Aker Solutions, SLB, Subsea7 get greenlight for tech venture, eye Q4 2023 closure

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A highly anticipated joint venture between Aker Solutions, SLB (Schlumberger), and Subsea7 has cleared the regulatory hurdles, marking a significant step forward towards its targeted fourth-quarter 2023 closing. The proposed collaboration, which aims to revolutionise subsea production economics, has received the green light from antitrust authorities in several countries after regulatory reviews.

The proposed JV will fuse Schlumberger’s and Aker Solutions’ subsea businesses, that include deep reservoir domain and engineering design expertise, an extensive field-proven subsea production and processing technology portfolio, world-class manufacturing scale and capabilities, and a comprehensive suite of life-of-field solutions for customers globally.

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Subsea 7 will be an equity partner.

Schlumberger had said that upon closing of the proposed transaction, the existing Subsea Integration Alliance (SIA) between it 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.

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In addition to contributing its subsea business to the joint venture, at closing Schlumberger will issue to Aker Solutions shares of its common stock valued at US$306.5 million 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 also will issue a promissory note to Aker Solutions for US$87.5 million.

In the end, Schlumberger will own the lion’s share of the stake with 70%; 20% will go to Aker Solutions and the remaining 10% stake to Subsea 7. The deal is expected to be finalised by the third quarter of 2023.

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

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