ABB, Aker Solutions Launch Subsea Partnership
April 27 2016 - 1:45AM
Dow Jones News
By Kjetil Malkenes Hovland
OSLO-Norway's Aker Solutions ASA (AKSO.OS) and Switzerland's ABB
Ltd. launched Wednesday a partnership to reduce the costs of subsea
oil and gas production, at a time of increased competition for
contracts as oil majors are slashing costs.
The two companies said they would combine Aker Solutions' subsea
skills with ABB's subsea power and automation technologies, in a
bid to slash costs and win contracts.
The companies said they would cooperate to enhance technologies
used to remotely control equipment on the seafloor from offshore
platforms or onshore facilities, which could potentially increase
the profitability of fields far away from existing
infrastructure.
Swiss power-grid and automated-equipment maker ABB has been hit
by an economic slowdown in China and savings measures in the oil
and gas industry, and Aker Solutions has been slashing hundreds of
jobs after losing a key maintenance contract with Statoil ASA amid
tougher competition in the oil-service industry.
The two companies have previously collaborated on the 2015
delivery of the subsea compression system for Statoil's Asgard
field offshore Norway.
Write to Kjetil Malkenes Hovland at
kjetilmalkenes.hovland@wsj.com
(END) Dow Jones Newswires
April 27, 2016 01:30 ET (05:30 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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