Schlumberger, Aker Solutions and Subsea 7 to form joint venture

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Schlumberger, Aker Solutions and Subsea 7 are setting up a joint venture to drive innovation and efficiency in subsea production by helping customers unlock reserves and reduce cycle time.

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The agreement will bring together a portfolio of technologies such as subsea gas compression, all-electric subsea production systems and other electrification capabilities that will help customers meet their decarbonization goals.

The joint venture will combine Schlumberger’s and Aker Solutions’ subsea businesses, which include deep reservoir domain and engineering design expertise, an extensive subsea production and processing technology portfolio, manufacturing scale and capabilities, and a suite of life-of-field solutions for customers all over the world. Subsea 7 will be an equity partner in the new joint venture.

“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,” said Schlumberger CEO Olivier Le Peuch. “We look forward to collaborating with both Aker Solutions and our subsea integration partner Subsea 7 on this new venture.”

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,” said Øyvind Eriksen, president and CEO of Aker ASA.

At the close of the transaction, the existing Subsea Integration Alliance (SIA) between Schlumberger and Subsea 7 will be amended so that the new joint venture will assume Schlumberger’s role in the alliance, which will be renewed for a ten-year term.

“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,” said Subsea 7 CEO John Evans.

In addition to contributing its subsea business to the joint venture, at closing Schlumberger will issue US$306.5 million worth of shares of its common stock to Aker Solutions in a private placement. Subsea 7 will purchase its 10% interest in exchange for US$306.5 million in cash to Aker Solutions. The joint venture will also issue a promissory note to Aker Solutions for US$87.5 million.

When the deal closes, Schlumberger will own 70% of the joint venture, Aker Solutions 20% and Subsea 7 10%. The transaction is expected to close in the second half of 2023.