Subsea 7 — M&A Activity 2017

Jun 29, 2017

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.
• 1. The acquired business of ECS includes approximately 850 people based in Houston, Singapore and Saudi Arabia.
• 1. 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.
• 1. 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.

• 1. The LTA enables the consortium with L&T to be invited to tender for future projects in Saudi Arabia.
• 1. 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.

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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. 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

Contact for media enquiries:

Corporate Communications Tel +44 1224 526270/ 526570 communications@subsea7.com www.subsea7.com

Forward-Looking Statements: Certain statements made in this announcement may include 'forward-looking statements'. These statements may be identified by the use of words like 'anticipate', 'believe', 'could', 'estimate', 'expect', 'forecast', 'intend', 'may', 'might', 'plan', 'predict', 'project', 'scheduled', 'seek', 'should', 'will', and similar expressions. The forward-looking statements reflect our current views and are subject to risks, uncertainties and assumptions. The principal risks and uncertainties which could impact the Group and the factors which could affect the actual results are described but not limited to those in the 'Risk Management' section in the Group's Annual Report and Consolidated Financial Statements 2016. These factors, and others which are discussed in our public announcements, are among those that may cause actual and future results and trends to differ materially from our forward-looking statements: actions by regulatory authorities or other third parties; our ability to recover costs on significant projects; the general economic conditions and competition in the markets and businesses in which we operate; our relationship with significant clients; the outcome of legal and administrative proceedings or governmental enquiries; uncertainties inherent in operating internationally; the timely delivery of vessels on order; the impact of laws and regulations; and operating hazards, including spills and environmental damage. Many of these factors are beyond our ability to control or predict. Other unknown or unpredictable factors could also have material adverse effects on our future results. Given these factors, you should not place undue reliance on the forwardlooking statements.