Offshore engineering firms Schlumberger and Aker Solutions plan to combine their subsea businesses and bring in Oslo-listed Subsea 7 as an equity partner in a newly formed joint venture company.
The proposed transaction would see Aker Solutions receive $700m in consideration for the sale of a 20% stake in the JV, of which $306.5m will be settled in the form of shares in Schlumberger, while Subsea 7 will be paying the same amount in cash.
The deal, which is expected to close during the second half of 2023, will leave Schlumberger with a 70% stake in the joint venture, while Aker Solutions and Subsea 7 will own 20% and 10%, respectively. The board of directors of the joint venture will consist of three representatives from Schlumberger, two from Aker Solutions and one from Subsea 7.
The new joint venture will form part of Subsea Integration Alliance, currently an unincorporated alliance between Schlumberger and Subsea 7. The alliance will be extended by 10 years from the transaction completion date.
Olivier Le Peuch, CEO of Schlumberger, said: “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. Customers will benefit from enhanced services that leverage digital and technology innovation to drive improved performance while increasing energy efficiency and reducing CO2 emissions.”
