Subsea 7 — M&A Activity 2017

Jun 29, 2017

Subsea 7 announces acquisition of certain businesses of EMAS Chiyoda Subsea

Subsea 7 announces acquisition of certain businesses of EMAS Chiyoda Subsea

Luxembourg - 29 June 2017 - Subsea 7 S.A. (Oslo Børs: SUBC, ADR:

SUBCY) today announced the acquisition of certain businesses of EMAS

Chiyoda Subsea (ECS). The acquisition, under a US bankruptcy code

Chapter 11 Plan of Reorganisation, was confirmed by the U.S.

Bankruptcy Court for the Southern District of Texas and became

effective on 29 June 2017.

Jean Cahuzac, CEO, said: "In a challenging business environment our

differentiated offering and strong capital discipline has enabled us

to pursue this opportunity. This targeted investment enables Subsea

7 to accelerate its strategy to provide a market leading service in

the Middle East.

The addition of people, local presence and client relationships of

ECS to our market leading SURF and Conventional capability expands

our global presence. As a result of this transaction we have

significantly increased our presence in the Middle East, assuming a

long-term agreement (LTA) and three current projects in Saudi

Arabia, in consortium with L&T Hydrocarbon Engineering (L&T).

Subsea 7 and Chiyoda Corporation, one of the Plan of Reorganisation

sponsors and a previous shareholder of ECS, have started discussions

regarding possible collaboration in engineering and technology

initiatives to provide solutions to our clients."

The financial results of the acquired entities will be consolidated

within Subsea 7's SURF and Conventional Business Unit effective 29

June 2017.

Subsea 7 will host a conference call for analysts and investors at

08:00 UK time on Friday 30 June. Dial in number +442031394830,

conference code 90079302#. A replay will be available on

www.subsea7.com.

Additional information

1. Subsea 7 will pay less than USD 100 million in aggregate,

including Subsea 7's contribution to the Debtor in Possession credit

facility, to acquire certain ECS businesses, the Ingleside spoolbase

and sundry other assets.

2. The acquired business of ECS includes approximately 850

people based in Houston, Singapore and Saudi Arabia.

3. Subsea 7 has secured a multi-year bareboat charter for the

pipelay vessel Lewek Champion for activities in the Middle East, and

a short-term charter for the pipelay vessel Lewek Constellation to

complete work in hand in other geographies.

4. As a result of the transaction, Subsea 7 has acquired

approximately USD 850 million of order backlog, including five

projects, each with backlog exceeding USD 50 million:

- Hasbah, in consortium with L&T, offshore Saudi Arabia

- Four Decks, in consortium with L&T, offshore Saudi Arabia

- 17 Cranes, in consortium with L&T, offshore Saudi Arabia

- OCTP, offshore Ghana

- TVEX, US Gulf of Mexico

Order backlog comprises approximately USD 300 million due for

execution in 2017, USD 450 million in 2018 and USD 100 million in

2019 and beyond.

5. The LTA enables the consortium with L&T to be invited to

tender for future projects in Saudi Arabia.

6. As a result of this transaction, revised financial guidance

for 2017, including this transaction, will be provided with Subsea

7's Second Quarter results on 26 July 2017.

**************************************************************

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.

Subsea 7 is listed on the Oslo Bors (SUBC), ISIN LU0075646355.

***************************************************************

Contact for investment community enquiries:

Isabel Green

Investor Relations Director

Tel +44 20 8210 5568

isabel.green@subsea7.com

www.subsea7.com

A pdf of this press release is available on www.subsea7.com