Schlumberger will have a 70% stake in the planned JV, while Aker Solutions will have 20% and Subsea 7 a 10% stake, pursuant to the terms of the agreement between the companies
Schlumberger, Aker Solutions and Subsea 7to form JV. (Credit: Schlumberger Limited)
US-based oilfield services provider Schlumberger, Norwegian engineering company Aker Solutions and offshore projects developer Subsea 7, are set to create a new subsea joint venture.
The proposed JV is expected to augment a portfolio of advanced technologies, including subsea gas compression, all-electric subsea production and other electrification capabilities.
It would combine Schlumberger and Aker’s subsea businesses, which have deep reservoir domain and engineering design expertise, along with subsea production and processing portfolio.
Aker president and chief executive officer Øyvind Eriksen said: “Aker Solutions, Schlumberger and Subsea 7 are complementary businesses, both in terms of products and services, as well as customers and geographical presence.
“Furthermore, Schlumberger shares our commitment to innovation, such as deploying digital solutions and decarbonization technologies.”
Under the terms of the JV agreement, Schlumberger will have a 70% stake in the planned JV, while Aker Solutions will have 20% and Subsea 7 a 10% stake.
The new JV will have around 9,000 employees worldwide, and the estimated synergy potential of more than $100m per year in the medium term.
Schlumberger will not only contribute its subsea business to the JV, but also issue its shares to Aker Solutions, worth $306.5m, in a private placement.
In addition, Aker Solutions will receive a promissory note from the new JV, for $87.5m.
Schlumberger chief executive officer Olivier Le Peuch said: “As investment in the offshore market, particularly in deepwater, continues to increase, our customers will benefit from enhanced services that leverage digital and technological innovation to drive improved subsea asset performance while increasing energy efficiency and reducing CO2 emissions.
“We look forward to collaborating with both Aker Solutions and our subsea integration partner Subsea 7 on this new venture.”
The transaction is expected to be completed in the second half of 2023, subject to regulatory approvals and other customary closing conditions.
Upon closing, the existing Subsea Integration Alliance (SIA) between Schlumberger and Subsea 7, will be amended to replace Schlumberger’s role in SIA with the new JV.
Subsea 7 chief executive officer John Evans said: “We are excited to build on our highly successful alliance with Schlumberger and partnership with Aker Solutions.
“This new joint venture is a critical step as we collaborate on integrated subsea projects that drive maximum value for our customers.”