Aker Solutions, Det norske and Subsea 7 have formed a “one for all, all for one” alliance amid the industry’s most challenging downturn yet.
The trio today confirmed a development alliance for their Norway operations.
The group hailed the move a “major shift in how an operator and its suppliers can work together on oil and gas developments offshore Norway”.
The alliance is made-up Det norske’s exploration and production expertise, Aker’s front-end engineering and brownfield capabilities and Subsea 7’s experience in engineering, procurement, installation and commissioning of subsea umbilicals, risers and flowlines (SURF).
“Our industry needs to find new, more sustainable ways of working on oil and gas developments,” said Karl Johnny Hersvik, chief executive officer of Det norske.
“This alliance enables a holistic approach to our subsea developments that will promote an effective reuse of solutions and best practices across the portfolio to significantly save time and reduce costs.”
The alliance includes an integrated project management team with experts from each company. The team will ultimately be led by a Det norske manager.
“We see this as a new and exciting way of working together as operator and suppliers with many potential benefits, not only for us individually as companies but also for the entire industry as we find more effective collaboration methods,” said Luis Araujo, chief executive officer of Aker Solutions.
Subsea 7 chief executive Jean Cahuzac added: “This is an innovative way of collaborating with an operator and another supplier.
“Working together as one integrated team across developments will promote greater sharing of knowledge and best practices.”
The ‘three musketeer’ pact comes after Det Norske agreed a four-year framework agreement with Aker earlier this year to provide subsea production systems and services for the operator’s oil and gas developments in Norway and with Subsea 7 for SURF services.
The scope of these framework contracts has a total potential value of about NOK 2.8 billion, of which approximately NOK 800 million is Aker Solutions’ share and NOK 2 billion is Subsea 7’s portion.
“This is collaboration through integration,” said Hersvik.
“We don’t want just an integrated team or a shadow organization, but one project management organization with the ‘best’ personnel from each company to extract the greatest synergies.”
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