Leading energy players close joint venture to transform subsea industry

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Aker Solutions, SLB, and Subsea 7 have successfully concluded their proposed transaction to establish a transformative subsea joint venture, unveiling the new entity under the name “OneSubsea.” In an official statement issued on Oct 2, the companies announced that OneSubsea would be at the forefront of innovation and efficiency in subsea production, aimed at assisting customers in unlocking reserves and reducing cycle times.

OneSubsea is the result of the integration of Aker Solutions’ and SLB’s respective subsea businesses, consolidating a wealth of complementary subsea production and processing technologies, world-class manufacturing capabilities, access to reservoir and digital expertise, unique pore-to-process integration capabilities, and enhanced research and development capabilities.

Kjetel Digre, Chief Executive Officer of Aker Solutions, emphasized the significance of this strategic move, stating, “By combining our strong and complementary competencies and technologies, we will deliver an industry step change that will benefit our customers and employees while significantly increasing shareholder value. For Aker Solutions, today also marks a defining moment in our strategy. We have transitioned from having a stand-alone subsea business to becoming a proud co-owner of a world-leading subsea company.”

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Mads Hjelmeland, formerly SLB’s Director of Subsea Production Systems, has been appointed as the Chief Executive Officer of OneSubsea. Hjelmeland expressed the company’s commitment to expanding the frontiers of subsea technology and driving a sustainable energy future. “We will accelerate innovation and contribute to the ambition of our customers to optimise their production and reduce emissions in their subsea operations,” he said.

OneSubsea will have its headquarters in Oslo, Norway, and Houston, Texas, with a global workforce of approximately 11,000 employees serving key operating regions around the world.

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The ownership structure of the joint venture is as follows: Aker Solutions holds a 20% stake, SLB retains 70%, and Subsea 7 maintains a 10% ownership interest.

In addition to Aker Solutions’ stake in the joint venture, the company will receive a total consideration of approximately US$700 million. This includes US$306.5 million in proceeds from SLB, settled in the form of SLB shares, US$306.5 million from a 10% divestment to Subsea 7 (with a portion settled in cash at closing), and US$87.5 million from a vendor note from the joint venture, to be paid with interest.

Aker Solutions anticipates significant benefits from the subsea joint venture, with an estimated synergy potential exceeding US$100 million per annum in the medium term. The joint venture is also expected to have an attractive dividend policy.

The company has a solid order backlog of more than NOK73 billion and is well-positioned to seize opportunities in the rapidly evolving energy markets. Aker Solutions estimates its 2023 revenues, excluding Subsea, to be approximately NOK34 billion.

All three of these companies have supported petroleum operations offshore Guyana.

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