Saipem and Subsea 7: ABEP Appeals Brazil Clearance

Research evidence excerpt

Saipem and Subsea 7: ABEP Appeals Brazil Clearance

J P M O R G A N Europe Equity Research

10 July 2026

Saipem and Subsea 7

ABEP Appeals Brazil Clearance

Brazil’s Association of Oil and Gas Exploration and Production Companies, European Oil & Gas

ACABEP, an interested third party in Brazilian regulator CADE’s review of the Alejandra Magana

Saipem/Subsea7 merger, has appealed the regulator’s recent unconditional (44-20) 3493-8031

approval, seeking either a full reversal or structural remedies. ABEP’s proposed alejandra.x.magana@jpmchase.com

remedy includes the divestment of high-spec rigid-lay vessels such as FDS 2 and J.P. Morgan Securities plc

Castorone, together with the crews, engineering capabilities, and infrastructure Specialist Sales contact details:

needed to create a viable independent competitor.

Ian Mitchell - Specialist Sales -

European Energy

In our view, ABEP’s strongest point relates to “idle” vessel capacity referenced in (44-20) 7134-1356

the approval. CADE initially reviewed a measure that included transit as idle, but ian.e.mitchell@jpmorgan.com

subsequently adopted the narrower measure of ashore days only. This supported

its conclusion that there was meaningful slack, with ~20 technically capable SPMI.MI, SPM IM

vessels against projected requirements of only 2–3 vessels annually in Brazil and Overweight

7–11 globally, implying ~9–13 vessels of headline theoretical headroom at the Price (09 Jul 26): €4.41

global level. ABEP argues that ashore periods can occur during active campaigns,

including for pipe loading or spooling, crew mobilization, and temporary waiting SUBC.OL, SUBC NO

periods between installation phases, meaning the vessel may not be genuinely

Neutralavailable for a new contract.

Price (09 Jul 26): Nkr338.60