Schlumberger and Subsea 7 have entered into negotiations to form a joint venture that builds on the success of Subsea Integration Alliance, established in 2015.
The joint venture will be owned 50% by Subsea 7 and 50% by Schlumberger.
The proposed joint venture will strengthen the front end engineering, design and execution of integrated projects, creating the 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, a Schlumberger company, and Subsea 7 will assign their respective Life of Field businesses to the joint venture.
Schlumberger and Subsea 7 both 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, added: “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.”