Aker Solutions, Schlumberger and Subsea 7 have entered into agreements to form a joint venture, with the goal of delivering a step change in subsea production economics.
The proposed joint venture will comprise the subsea businesses of Schlumberger and Aker Solutions, with Subsea 7 purchasing 10% of the joint venture.
The business is expected to bring together deep reservoir domain and engineering design expertise, an extensive field-proven subsea production and processing technology portfolio, manufacturing scale and capabilities, and a suite of life-of-field solutions to customers.
The transaction, which is expected to close during the second half of 2023, is subject to regulatory approvals and other customary closing conditions.
Following completion, Schlumberger will own 70% of the joint venture, with Aker Solutions and Subsea 7 owning 20% and 10%, respectively.
Aker Solutions will receive $306.5 million from Schlumberger which will be settled in the form of shares in Schlumberger. The shares will be settled based on the volume-weighted average trading price of Schlumberger shares in the 10 business days preceding the closing of the transaction and are subject to a lock-up period of a minimum of 180 days.
Subsea 7 will purchase a 10% interest in the joint venture from Aker Solutions, which will be settled in cash. Of this, 50% will be settled upon closing of the transaction and the remainder will be settled, with interest, by 30 June 2024.
Aker Solutions will receive $87.5 million in proceeds from a vendor note from the joint venture. At least 50% will be paid, with interest, one year after the transaction closes and the remainder within two years.
The Board of Directors of the joint venture will comprise three representatives from Schlumberger, two from Aker Solutions and one from Subsea 7.
Subsea Integration Alliance , currently an unincorporated alliance between Schlumberger and Subsea 7, will continue between the JV and Subsea 7 and will be extended by 10 years from the transaction completion date.
According to the parties, the combined business will have approximately 9,000 employees globally.
“This joint venture will bring together world-class businesses that are uniquely positioned to provide subsea technologies to help our customers improve recovery and reduce overall subsea development costs,” said Schlumberger CEO Olivier Le Peuch .
“Customers will benefit from enhanced services that leverage digital and technology innovation to drive improved performance while increasing energy efficiency and reducing CO2 emissions.”
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