Aker Solutions, Schlumberger and Subsea 7 have entered agreements to form a joint venture (JV), contributing to their subsea businesses.
Following the planned transactions, this would be owned 70% by Schlumberger, 20% by Aker Solutions and 10% by Subsea 7.
It would combine the trio’s expertise in deep reservoir domain and engineering design, subsea production and processing technology, manufacturing at scale, and life-of-field solutions to customers worldwide.
Pending regulatory approvals and other customary conditions, the agreement should close during second-half 2023.
Aker Solutions will receive $700 million in consideration for the sale of a 20% interest in the JV, retaining a 20% ownership. Of this, the $306.5 million paid by Schlumberger will be settled in the form of shares in Schlumberger.
Subsea 7 will purchase a 10% interest in the JV from Aker Solutions for $306.5 million, to be settled in cash.
Subsea Integration Alliance, currently an unincorporated alliance between Schlumberger and Subsea 7, will be merged into the new entity, and it will be extended by 10 years from the closing date of the transaction.
The board of the JV will comprise three representatives from Schlumberger, two from Aker Solutions and one from Subsea 7.
The combined business will have about 9,000 employees globally. Until the transaction closes, each party will continue to operate their businesses independently.
“This joint venture will bring together world-class businesses that are uniquely positioned to provide subsea technologies to help our customers improve recovery and reduce overall subsea development costs,” said Schlumberger CEO Olivier Le Peuch.
Source: Offshore Mag
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