HOUSTON, 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 Børs (SUBC), ISIN LU0075646355. For more information visit www.subsea7.com.
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.
Forward-Looking Statements: Some of the statements in this announcement are ‘forward-looking statements’. These statements may be identified by the use of words like ‘anticipate’, ‘believe’, ‘could’, ‘estimate’, ‘expect’, ‘forecast’, ‘intend’, ‘may’, ‘might’, ‘plan’, ‘predict’, ‘project’, ‘scheduled’, ‘seek’, ‘should’, ‘will’, and similar expressions. The forward-looking statements reflect current views and are subject to risks, uncertainties and assumptions. Some of the risks and uncertainties which could impact each of the parties to the joint venture and the factors which could affect the actual results are described but not limited to those in the ‘Risk Management’ section in Subsea 7’s Annual Report and Consolidated Financial Statements 2016 and the ‘Risk Factors’ section of Schlumberger Limited’s Annual Report for 2017 on Form 10-K as filed with the U.S. Securities and Exchange Commission. These factors, and others which are discussed in each company’s public announcements, are among those that may cause actual and future results and trends to differ materially from the forward-looking statements: actions by regulatory authorities or other third parties; Subsea 7’s ability to recover costs on significant projects; the general economic conditions and competition in the markets and businesses in which the joint venture will operate; Subsea 7’s relationship with significant clients; the outcome of legal and administrative proceedings or governmental enquiries; uncertainties inherent in operating internationally; the timely delivery of vessels on order; the impact of laws and regulations; and operating modifications, delays, cancellations or hazards, including spills and environmental damage; global economic conditions; changes in exploration and production spending by the joint venture’s customers and changes in the level of oil and natural gas exploration and development; general economic, political and business conditions in key regions of the world; foreign currency risk; pricing pressure; weather and seasonal factors; production declines; and the inability of technology to meet new challenges in explorations. Many of these factors are beyond our ability to control or predict. Other unknown or unpredictable factors could also have material adverse effects on our future results. Given these factors, you should not place undue reliance on the forward-looking statements. The forward-looking statements speak only as of the date of the presentation referred to above, and the parties disclaim any intention or obligation to update publicly or revise such statements, whether as a result of new information, future events or otherwise.
For further information, contact:
Isabel Green - Investor Relations Director
Tel +44 (0)20 8210 5568
Simon Farrant – Schlumberger Limited, Vice President of Investor Relations
Joy V. Domingo – Schlumberger Limited, Manager of Investor Relations
Tel: +1 (713) 375-3535
Julie Taylor - Corporate Communications
Tel +44 (0) 1224 526270
Joao Felix –Schlumberger Limited, Director of Corporate Communication
Tel: +1 (713) 375-3535