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Subsea 7 S.A. announces cost reduction programme

Luxembourg - 12 May, 2015 - Subsea 7 S.A. (Oslo

Børs: SUBC) announced that in view of the difficult

business and economic conditions in the oil and gas

market and declining workload, a programme of cost

reduction measures will be implemented including a

re-sizing of the fleet and workforce, and the

restructuring of its corporate organisation.

It is envisaged that the overall reduction in the

global workforce would be approximately 2,500 by

early 2016, down from the 13,000 reported at the

end of 2014. Consultation with employees and

employee representatives will continue to take

place on a local basis and consultation processes

have begun in Norway and the UK.

The global fleet will be reduced by up to 11

vessels, based on a mixture of non-renewal of

charter vessels and either disposal or stacking of

owned vessels. It is intended that the reshaping of

the fleet will be phased over the coming 12 months,

commensurate with the projected global workload as

well as continued effective execution of projects.

At the end of 2014, the fleet consisted of 39

vessels with a further five under construction.

Jean Cahuzac, Chief Executive Officer, said: "These

cost reduction plans will allow us not only to

adapt to present market challenges but also to

maintain our competitiveness and the long-term

viability of our business. This will enable us to

emerge stronger once the downturn ends. Reducing

employment is not a decision we take lightly but

one that is necessary in today's difficult oil and

gas environment."

"Deepwater oil and gas production remains a

significant market with long-term growth potential.

While implementing the restructuring of our

organisation, we remain committed to preserving our

core capabilities and investing in key enabling

technologies to deliver cost-effective solutions to

our clients through all stages of the oil price

cycle."

 

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Subsea 7 S.A. is a leading global contractor in

seabed-to-surface engineering, construction and

services to the offshore energy industry. We

provide technical solutions to enable the delivery

of complex projects in all water depths and

challenging environments.

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Contact for investment community enquiries:

Isabel Green

Investor Relations Director

Tel +44 (0)20 8210 5568

isabel.green@subsea7.com

www.subsea7.com

Contact for media enquiries:

Carol Reed

Group Communications Director

Tel. +44 (0)20 8210 5570

carol.reed@subsea7.com

www.subsea7.com

SUBCCostReduction12May.pdf