Aker ASA and Schlumberger Deepening Long-Term Collaboration
FORNEBU, Norway, Aug. 30, 2022 /PRNewswire/ -- Aker ASA ("Aker") announced today a deepening of its long-term collaboration with Schlumberger. The companies will leverage complementary capabilities to strengthen their joint commitment to innovation, including within subsea and by exploring opportunities for digitalization and decarbonization technologies.
Reference is made to Aker Solutions ASA's ("Aker Solutions") announcement regarding the formation of a joint venture with Schlumberger and Subsea 7 to drive innovation and efficiency in subsea production by helping customers unlock reserves, lower development costs, and reduce time to first oil. The agreement will combine a portfolio of innovative technologies, such as all-electric subsea production systems that help customers meet their decarbonization goals.
The proposed joint venture will combine Schlumberger and Aker Solutions' subsea businesses, bringing together deep reservoir domain and engineering design expertise, an extensive field-proven subsea production and processing technology portfolio, world-class manufacturing scale and capabilities, and a comprehensive suite of life-of-field solutions to customers all over the world. Subsea 7 will be an equity partner in the new joint venture.
"We are very pleased to be strengthening our collaboration with Schlumberger. Aker Solutions, Schlumberger and Subsea 7 are complementary businesses, both in terms of products and services, as well as customers and geographical presence. Furthermore, Schlumberger shares our commitment to innovation, such as deploying digital solutions and decarbonization technologies," said Øyvind Eriksen, President and Chief Executive Officer of Aker ASA.
"This joint venture will bring together world-class businesses that are uniquely positioned to provide subsea technologies to help our customers improve recovery and reduce overall subsea development costs," said Schlumberger CEO Olivier Le Peuch. "Customers will benefit from enhanced services that leverage digital and technology innovation to drive improved performance while increasing energy efficiency and reducing CO2 emissions."
Following the transaction, Schlumberger will own 70% of the joint venture, with Aker Solutions owning 20%, and Subsea 7 owning 10%. In addition to the shareholding in the JV, the transactions include a settlement of USD 700 million, of which USD 306.5 million is settled in Schlumberger shares, USD 306.5 million in cash from Subsea 7, and a vendor note from the joint venture to Aker Solutions of USD 87.5 million. The transaction is subject to regulatory approvals and other customary closing conditions and is expected to close during second half 2023. In addition to the value of the transactions, Aker Solutions will retain the cash generation from the Subsea business until closing, estimated at around USD 300 million. This estimate includes cash generation for the seven quarters from second quarter of 2022 until end of 2023.
"The transaction means Aker Solutions can both unlock value creation and free up capital for greater investment capacity. This allows it to accelerate its transformation and create a world-class digitally powered engineering and project execution company, enabled by Cognite's data platform and Aize's software applications. I am confident that this makes Aker Solutions more competitive for opportunities both in ensuring energy security through its oil and gas business, as well as in the energy transition and renewables," said Eriksen.
For more information about the transaction structure and terms, please refer to Aker Solutions' announcement available at www.akersolutions.com.
For questions, please contact:
Torbjørn Andersen, Vice President of External Communications, Aker Solutions
Tel: +47 928 85 542
torbjorn.andersen@akersolutions.com
Josh Byerly – Vice President of Communications, Schlumberger
Moira Duff – Director of External Communication, Schlumberger
Tel: +1 (713) 375-3407
media@slb.com
Julie Taylor, Head of Group Communications, Subsea 7
Tel +44 1224 526270
julie.taylor@subsea7.com
Atle Kigen, Head of Media Relations and Public Affairs, Aker ASA
Tel: +47 907 84 878
Email: atle.kigen@akerasa.com
Investors
Fredrik Berge – Vice President of Investor Relations, Aker Solutions
Tel: +47 450 32 090
fredrik.berge@akersolutions.com
Ndubuisi Maduemezia – Vice President of Investor Relations, Schlumberger
Joy V. Domingo – Director of Investor Relations, Schlumberger
Tel: +1 (713) 375-3535
investor-relations@slb.com
Katherine Tonks – Investor Relations Director, Subsea 7
Tel: +44 20 8210 5568
katherine.tonks@subsea7.com
Christina Chappell Schartum, Head of Communications and Investor Relations, Aker ASA
Tel: +47 905 32 774
Email: christina.glenn@akerasa.com
This information is considered to include inside information pursuant to the EU Market Abuse Regulation article 7 and is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act. This stock exchange announcement was published by Laila Hop, Paralegal, Aker ASA, on August 30, 2022, at 07:00 CEST.
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