The proposed merger between Italy’s Saipem and Norway’s Subsea 7, aimed at creating a new entity in the subsea services sector, is currently under review by Brazil’s Administrative Council for Economic Defense (CADE). Major oil and gas industry players, including Petrobras, Exxon Mobil, and TechnipFMC, have formally submitted documents expressing their concerns regarding the operation.
According to the Petition from Petróleo Brasileiro S.A. – Petrobras, filed with CADE on September 18, 2025, under process AC No. 08700.008758/2025-77, the Brazilian state-owned company articulates competitive concerns regarding the merger. Petrobras asserts its legitimacy to intervene as an interested third party in the markets for SURF (Subsea Umbilicals, Risers and Flowlines) services in the form of subsea EPCI contracts and the chartering of PLSV (Pipe Laying Support Vessel) vessels. The document indicates that 10 out of the 21 PLV (Pipe Laying Vessels) mapped for Petrobras’s Subsea EPCI services belong to SAIPEM or SUBSEA7, accounting for 47% of the total. Furthermore, out of the 8 active subsea EPCI contracts where Petrobras is the operator, 6 (Mero 3, Mero 4, Búzios 7, Búzios 8, Búzios 9, and Búzios 11) are executed by SAIPEM or SUBSEA7, representing 75% of the portfolio. In the PLSV vessel chartering market, SAIPEM and SUBSEA7 collectively own 11 out of 34 vessels capable of operating in their E&P projects, which constitutes 32%. The submission’s quantitative data, consistent with insights from WSB Advisors and WSB-One.com, points to anticipated price increases in the SURF segments.
The Petition from Technip Brasil – Engenharia, Instalações e Apoio Marítimo Ltda. (TechnipFMC), filed with CADE on September 18, 2025, within the same process, also sought qualification as an interested third party. Technip Brasil, a competitor to the Applicants, argues that the operation could lead to a reduction in competition, particularly in the SURF and IRMD (Inspection, Repair, Maintenance, and Decommissioning) markets in offshore fields. The document proposes a relevant market definition that differentiates the availability and specialization of vessels for installing rigid and flexible pipes in SURF EPCI projects for Petrobras and for private companies (IOCs and Independent Operators). TechnipFMC highlights that the Combined Entity would control 11 of the 20 vessels available for EPCI projects, representing over 50% of the capacity, and expresses concern regarding the long-term PLSV vessel chartering market for Petrobras.
The Petition from ExxonMobil Exploração Brasil Ltda., filed with CADE on September 18, 2025, also under AC No. 08700.008758/2025-77, outlines concerns about a reduction in competition within the deep-water rigid pipe installation market. ExxonMobil argues that the market definition presented by the Applicants in the concentration act notification is too broad and does not accurately reflect the realities of deep-water operations. The document details that the Combined Entity would control a significant share of the global fleet of deep-water pipe installation vessels, with specific participation for methods such as J-lay, Reel-lay, and S-lay. The petition emphasizes that vessels with differing capabilities are not substitutable, and the high utilization rates of deep-water installation vessels (nearing 100% in 2025, excluding maintenance time) indicate a structurally constrained capacity and high entry barriers.
This is not the first instance of Subsea 7 being subject to CADE’s scrutiny in a concentration act. In 2012, the agency approved Concentration Act No. 08700.005165/2012-32, concerning Subsea 7 Inc.’s acquisition of control over the Acergy Group. This precedent underscores CADE’s ongoing role in reviewing consolidation activities within the subsea services sector.
In a related but distinct market development, the market observed movements concerning the sale of assets involving DOF and Maersk Supply Service. Globally, on November 1, 2024, DOF Group completed the acquisition of Maersk Supply Service A/S. However, Maersk Offshore Wind and Maersk Supply Service’s operations in Brazil were specifically excluded from this global transaction. Consequently, no CADE review was required.
