Subsea 7’s joint venture with drilling giant SLB and Norway’s Aker Solutions is one step closer to completion.
The proposed outfit — the Subsea Integration Alliance — has received antitrust approvals in Brazil, Angola, Mozambique, Australia, Norway, the UK and the US, clearing the way to close the deal later this year.
The company is expected to help its offshore oil and gas customers drill oil more quickly while lowering development costs and easing decarbonisation efforts.
“The parties will continue to work to satisfy the remaining conditions for closing, and aim to close as early as practicably possible in the fourth quarter of 2023,” a statement published on Monday from Kristian Siem-backed Subsea 7 read.
The Subsea Integration Alliance, formerly described as a “non-incorporated strategic global alliance” between the Luxembourg-registered offshore player and SLB affiliate OneSubsea, had previously won contracts announced by Subsea 7, including a May deal for work on the Raven Infills Project offshore Egypt.
The trio agreed last August to incorporate the alliance, which sees SLB and Aker Solutions bring together their subsea businesses and Subsea 7 taking a 10% stake.
As outlined last year, SLB will pay Aker Solutions $307m in SLB shares. Subsea 7 will then buy a 10% interest in the joint venture for $307m in cash.
Upon completion, SLB will own 70% of the joint venture, Aker Solutions 20% and Subsea 7 10%.
In midday trading on Monday, Subsea 7 shares were down to NOK 136.10 ($13.41), slipping NOK 0.90 since the open.
