Cameron, Schlumberger form subsea joint venture

theflyonthewall.com

Cameron (CAM) and Schlumberger (SLB) announced the creation of OneSubsea, a joint venture to manufacture and develop products, systems and services for the subsea oil and gas market. Cameron and Schlumberger have 60/40 ownership of the joint venture, respectively, and the transaction is subject to regulatory approvals and other customary closing conditions. Under the terms of the formation agreement, Cameron will contribute its existing subsea division and receive $600M from Schlumberger. Schlumberger will contribute its Framo, Surveillance, Flow Assurance and Power and Controls businesses. Cameron will manage the joint venture and will consolidate it for financial reporting purposes. Cameron will reflect minority interest in its financial statements for Schlumberger’s interest in the JV. A key priority of the joint venture will be strengthening research and engineering investment, including complementary projects with the parent companies, towards the integration of the complete subsea production system from pore space to the export point, in order to unlock reservoir potential from our customer’s subsea developments. Credit Suisse acted as financial advisor to Cameron. Goldman, Sachs & Co. acted as financial advisor to Schlumberger.

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