Asset/portfolio management

Subsea Giants Close Joint Venture

Aker Solutions, SLB, and Subsea 7 have joined to create a subsea engineering firm to drive innovation and efficiency in subsea production.

Source: Subsea 7

Aker Solutions, SLB (formerly Schlumberger), and Subsea 7 announced the final closing of their joint venture signed in August 2022 that will drive innovation and efficiency in subsea production.

The new business, operating under the OneSubsea name, will help customers unlock reserves and reduce cycle time.

OneSubsea now includes Subsea 7 and SLB’s and Aker Solutions’ subsea businesses, a complementary subsea production and processing technology portfolio, manufacturing scale and capacity, and access to reservoir and digital domain expertise.

The company said its customers see its field-proven subsea processing capabilities as unparalleled in enhancing reservoir recovery and enabling long tiebacks. Its compression technology portfolio has proven its potential to reduce the structure and capital cost of developing new energy reserves. At the same time, subsea projects have shown to be inherently more carbon-efficient than topside solutions.

“The offshore market is demonstrating a sustained resurgence as operators across the world look to accelerate development cycle times and increase the productivity of their offshore assets,” said Olivier Le Peuch, chief executive of SLB. “With its combined technology portfolio that leverages digital innovation, OneSubsea is ideally placed to support customers in their drive to improve asset performance while increasing energy efficiency and reducing CO2 emissions.”

SLB holds a 70 % equity stake in the joint venture, with Aker Solutions holding 20%. Subsea7 holds 10% of the joint venture in exchange for a cash consideration of $306.5 million paid in two equal installments in 2023 and 2024.

Mads Hjelmeland, chief executive of OneSubsea, said the new venture would address future market trends and needs "at a unique scale.”

"In doing so, we aim to fulfill our purpose of expanding the frontiers of subsea to drive a sustainable energy future.”

OneSubsea will be headquartered in Oslo, Norway, and Houston, with 11,000 people working in all key operating regions around the world.