Subsea 7 S.A. (Oslo Børs: SUBC, ADR: SUBCY) today announced, together with Det norske oljeselskap and Aker Solutions, the formation of an alliance.
The alliance combines Det norske’s exploration and production know-how with Subsea 7’s capabilities in the engineering, procurement, installation and commissioning of subsea umbilicals, risers and flowlines (SURF) and Aker Solutions’ expertise in front end engineering, brownfield modifications and subsea systems. It will enable the operator and suppliers to work as one integrated team to find the most cost-effective solutions for developing Det norske’s entire Norwegian subsea field portfolio.
The companies will form an integrated project management team with experts from each. This will enable continuity from one field development to another and facilitate a reuse of solutions and technology that will lower costs, reduce development time and promote safe and more efficient work methods amid a focus on continuous improvement. All parties share both risks and rewards.
The alliance accord comes after Det norske in June announced a four-year framework agreement with Subsea 7 for SURF services and with Aker Solutions to provide subsea production systems and services for the operator’s oil and gas developments in Norway. The scope of these framework contracts has a potential value of about NOK 2.8 billion, of which approximately NOK 2 billion is Subsea 7’s share and NOK 800 million is Aker Solutions’ portion.
Chief Executive Officer Jean Cahuzac of Subsea 7 said:
‘This is an innovative way of collaborating with an operator and another supplier, working together as one integrated team across developments will promote greater sharing of knowledge and best practices.’
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