Subsea understanding without equity

ABB and Schlumberger have announced they have signed a Memorandum of Understanding (MOU) to form a joint venture aimed at improving the economics of subsea oil and gas development.

The scope of the memorandum includes development of new technologies and services that will be needed in hydrocarbon production from the oil reservoir to the delivery point – whether on a platform, ship or directly to shore.

The joint venture will not require any material equity investment but will offer new technology for deepwater and offshore assets based on a risk-reward business model. A joint statement suggested that the oil, gas and petrochemicals industry is increasingly geared to sharing both the risk and reward involved with moving a project or technology.

‘Our objective is to provide the systems and processes that will allow our customers to develop both deepwater and marginal offshore fields more economically,’ said Euan Baird, Chairman and CEO of Schlumberger. ‘We believe that by working together, we can deliver innovative solutions that will significantly advance the state-of-the-art in subsea field development.’

A definite agreement between the parties is anticipated before year-end 2000.