Schlumberger, Aker Solutions and Subsea 7 announced on Tuesday the launch of a new start-up venture meant to drive innovation and efficiency in subsea production by helping customers unlock reserves and reduce cycle time.
Schlumberger, in the announcement, outlined that the deal will encompass a portfolio of innovative technologies such as subsea gas compression, all-electric subsea production systems and other electrification capabilities that help customers meet their decarbonisation goals.
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.
Subsea 7 will be an equity partner.
Schlumberger Chief Executive Officer (CEO) Olivier Le Peuch said customers will reap the benefits of enhanced services that leverage digital and technological innovation to drive improved subsea asset performance while also increasing energy efficiency and reducing CO2 emissions.
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Øyvind Eriksen, Aker’s President and CEO commented too that the three entities are complementary businesses, with Schlumberger sharing Aker’s commitment to innovation, such as deploying digital solutions and decarbonisation technologies.
Schlumberger 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.
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.