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Subsea 7 — M&A Activity 2015
Jul 16, 2015
6244_iss_2015-07-16_dbe0b68c-fedd-4039-9843-acf5bc39315b.html
M&A Activity
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Subsea 7 and KBR form global alliance to deliver Concept and FEED services
Subsea 7 and KBR form global alliance to deliver Concept and FEED services
Luxembourg - 16 July, 2015 - Subsea 7 S.A. (Oslo
Børs: SUBC, ADR: SUBCY) announced today that it has
signed an agreement to form an alliance with
Houston-based KBR, Inc. (KBR) and its wholly owned
subsidiary, Granherne Inc. (Granherne), to
collaborate in the delivery of Concept and Front
End Engineering and Design (FEED) services to the
global offshore oil and gas industry.
The alliance will bring two market-leading
companies together to ensure the most cost-
effective solutions are presented to clients in the
early concept evaluation phase of a field
development project. KBR's and Granherne's
expertise in field development planning, concept
evaluation and FEED will be complemented by Subsea
7's subsea project management and engineering
experience and the application of technology and
know-how to enable improved cost-benefit evaluation
for clients.
Within the co-operation agreement between the
companies, Granherne will support Subsea 7 on
concept and FEED studies and Subsea 7 will support
Granherne with subsea engineering and technology.
The alliance will operate on a global basis using
the existing resources of the two companies.
The alliance further provides the opportunity for
KBR and Subsea 7 to collaborate in the execution
phase of offshore projects. The combined experience
and capabilities has the potential to deliver the
full scope of any project. The decision to
collaborate will be on a project-by-project basis
and will be based on a clear and differentiated
value proposition to the client.
Jean Cahuzac, Subsea 7 Chief Executive Officer,
said: "This alliance will drive improvements in the
offshore market with two leading independent
companies working together to deliver greater value
for clients worldwide. I look forward to
strengthening our relationship with KBR through
this alliance which provides the opportunity for
early engagement in the project lifecycle when
value creation can be optimised and where we can
introduce enabling subsea technologies and know-how
at the critical concept evaluation stage. This is
key to assisting the offshore oil and gas industry
to adapt to the lower oil price environment."
Stuart Bradie, KBR President and CEO, said: "This
alliance combines the complementary skill-sets and
know-how of two leading offshore contractors
working together to ensure a greater contribution
at the early stage of projects. Together, both
companies can ensure that offshore oil and gas
development becomes more economic and we look
forward to continuing our already strong working
partnership with Subsea 7."
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Subsea 7 S.A. is a leading global contractor in
seabed-to-surface engineering, construction and
services to the offshore energy industry. We
provide technical solutions to enable the delivery
of complex projects in all water depths and
challenging environments.
KBR, Inc. is a global technology, engineering,
procurement and construction company serving the
hydrocarbons and government services industries,
employing about 25,000 people worldwide with
customers in more than 70 countries and operations
in 40 countries across three distinct global
businesses: Technology & Consulting, including
proprietary technology in refining, ethylene,
ammonia and fertilizers, and gasification; and
niche consulting and know-how through
Granherne/Energo and GVA; Engineering &
Construction, including Upstream Oil & Gas;
LNG/GTL; Downstream Oil & Gas, Petrochemicals and
Chemicals; and differentiated EPC; and, Government
Services, including program management and long
term annuity contracts.
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Contact for investment community enquiries:
Isabel Green
Investor Relations Director
Subsea 7
Tel +44 (0)20 8210 5568
www.subsea7.com
Contact for media enquiries:
Carol Reed
Group Communications Director
Subsea 7
Tel. +44 (0)20 8210 5570
www.subsea7.com