Brazilian Oil Companies Join Forces Against Subsea 7-Saipem Merger

Opposition to Merger: Brazilian oil producers are against the merger between Subsea 7 and Saipem, citing concerns that the new entity could impose higher costs and pressure clients into exclusive contracts.

Regulatory Scrutiny: Brazil's antitrust agency, Cade, has requested additional data from Subsea 7 and Saipem as part of its investigation into the merger.

Competitive Concerns: TotalEnergies and Exxon Mobil have raised alarms about the merged company's potential dominance in subsea projects, particularly in deep water and adverse conditions, as well as in emerging sectors like decommissioning and offshore wind.

Financial Outlook: If the merger proceeds, the combined company is projected to have a significant order backlog of €43 billion, revenue of approximately €21 billion, and core earnings exceeding €2 billion.