Saipem, Subsea7 set to merge, forming subsea construction powerhouse
Optimizing project schedules
During a presentation earlier today, Saipem’s Puliti said the combined operation would have a broader ability to optimize clients’ project schedules. Subsea7’s Evans claimed that clients would benefit from a more integrated service offering and an enhanced global presence, while the combined companies would gain access to a wider investor base and sources of capital.
Politi also foresaw greater opportunities in LNG and carbon capture.
“Saipem is the only contractor capable of carbon capture, transporting it by land and sea, and drilling wells for CO2 injection," he said. "With Subsea7, we will be even stronger in this segment.”
The two companies already have a good working relationship, Evans noted, with collaborations on the Seagreen offshore wind project in the UK North Sea and the Sakariya 1 and 2 subsea tieback developments in the Black Sea, deploying their complementary strengths.
Pre-existing alliances
As for existing involvement in other subsea engineering groups, such as the Subsea Integration Alliance between Subsea7, One Subsea and Aker Solutions, “we don’t see issues there,” Evans said. “In fact, we will offer the alliance and enlarged capability. But conversations will take place over the next few months.”
Evans elaborated, “Contracts are getting larger and more complex…and having a larger vessel fleet will be good for our respective clients. The industry has a challenge of moving large energy assets halfway round the world to meet clients’ needs, and having a huge fleet helps.”
Saipem also has a cooperation agreement with TechnipFMC. Puliti said the company plans to honor this and does not see the arrangement necessarily ending.
Enhanced schedule flexibility
As for reactions to the planned merger from offshore operators, Puliti said that “the initial feedback has been positive. Clients need flexibility on fleet utilization. If they have to accommodate a late change to the agreed schedule, [having access to a larger fleet] makes this much easier.”
Puliti added, “We sign contracts that are executed 18 months to two years later. [The schedule] is more rigid with a smaller fleet; if clients then say, I need you to come two months later, we can do this with a larger fleet.”
