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Subsea 7 and KBR alliance

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World Pipelines,

Subsea 7 S.A. has announced that it has signed an agreement to form an alliance with Houston-based KBR, Inc. (KBR) and its wholly owned subsidiary, Granherne Inc. (Granherne), to collaborate in the delivery of concept, and Front End Engineering and Design (FEED) services to the global offshore oil and gas industry.

The alliance will bring two market-leading companies together, to ensure that the most cost-effective solutions are presented to clients in the early concept evaluation phase of a field development project. Both KBR and Granherne's expertise in field development planning, concept evaluation, and FEED, will be complemented by Subsea 7's subsea project management and engineering experience and the application of technology and know-how, to enable improved cost-benefit evaluation for clients.

Within the co-operation agreement between the companies, Granherne will support Subsea 7 on concept and FEED studies, and Subsea 7 will support Granherne with subsea engineering and technology. The alliance will operate on a global basis using the existing resources of the two companies. The alliance further provides the opportunity for KBR and Subsea 7 to collaborate in the execution phase of offshore projects. The combined experience and capabilities has the potential to deliver the full scope of any project. The decision to collaborate will be on a project-by-project basis and will be based on a clear and differentiated value proposition to the client.

Comments from Subsea 7

Jean Cahuzac, Subsea 7 Chief Executive Officer, said: "this alliance will drive improvements in the offshore market with two leading independent companies working together to deliver greater value for clients worldwide. I look forward to strengthening our relationship with KBR through this alliance, which provides the opportunity for early engagement in the project lifecycle when value creation can be optimised and where we can introduce enabling subsea technologies and know-how at the critical concept evaluation stage. This is key to assisting the offshore oil and gas industry to adapt to the lower oil price environment."

Comments from KBR

Stuart Bradie, KBR President and CEO, said: "this alliance combines the complementary skill-sets and know-how of two leading offshore contractors working together to ensure a greater contribution at the early stage of projects. Together, both companies can ensure that offshore oil and gas development becomes more economic, and we look forward to continuing our already strong working partnership with Subsea 7."

Edited from PR by Stephanie Roker

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