Schlumberger and Subsea 7 Announce Intent to Form a Joint Venture

LUXEMBOURG, February 23, 2018—Schlumberger (NYSE:SLB) and Subsea 7 S.A. (Oslo Børs:SUBC, ADR:SUBCY), today announced that they have entered into exclusive negotiations to form a joint venture that builds on the success of Subsea Integration Alliance, which was established in 2015. 

Subsea Integration Alliance currently combines the subsurface expertise, subsea production systems (SPS) and subsea processing systems of OneSubsea with the subsea umbilical, riser and flowline systems (SURF) capability of Subsea 7. 

To help reduce the total cost of ownership and enhance customer efficiency throughout the asset lifecycle while maximizing total production, the proposed joint venture will further strengthen the front end engineering, design and execution of integrated projects, and will build on the expertise from both companies creating a unique Life of Field offering that includes autonomous subsea technology, digitally enabled remote surveillance and production monitoring, and inspection, maintenance and repair services. 

In addition to contributing resources related to early engagement and tendering, OneSubsea and Subsea 7 will assign their respective Life of Field businesses to the joint venture. 

The joint venture will be owned 50% by Subsea 7 and 50% by Schlumberger. Both parties expect to account for their investments in the joint venture under the equity method of accounting. Customers will remain free to purchase non-integrated products and services from any manufacturer and vendor, including Schlumberger and Subsea 7. 

Jean Cahuzac, Subsea 7 CEO, said: “This joint venture will build on the success of Subsea Integration Alliance to provide our clients with the best solutions and services on an integrated basis. We are looking forward to strengthening our collaboration with Schlumberger and extending our range of innovative solutions and technologies to drive industry progress.” 

Olivier Le Peuch, President, Cameron Group, Schlumberger, commented: “Subsea Integration Alliance has already provided our customers with industry leading innovation and value. The proposed joint venture will give us the opportunity to capitalize on the synergies already established and significantly improve subsea economics over the lifetime of the field.” 
 

About Subsea 7

Subsea 7 S.A. is a leading global contractor in seabed-to-surface engineering, construction and services to the offshore energy industry. Subsea 7 provides technical solutions to enable the delivery of complex projects in all water depths and challenging environments. Subsea 7 is listed on the Oslo Bors (SUBC), ISIN LU0075646355. For more information visit www.subsea7.com. 

About Schlumberger

Schlumberger is the world's leading provider of technology for reservoir characterization, drilling, production, and processing to the oil and gas industry. Working in more than 85 countries and employing approximately 100,000 people who represent over 140 nationalities, Schlumberger supplies the industry's most comprehensive range of products and services, from exploration through production, and integrated pore-to-pipeline solutions that optimize hydrocarbon recovery to deliver reservoir performance. 

Schlumberger Limited has principal offices in Paris, Houston, London and The Hague, and reported revenues of $30.44 billion in 2017. For more information, visit www.slb.com.