Siemens Strengthens Its Position in the Subsea Power Market


Acquisition of subsea specialists Poseidon and Bennex

Siemens has entered into an agreement to acquire the two subsea specialists Poseidon
Group AS and Bennex Group AS from Subsea Technology Group AS, Norway. Poseidon
provides subsea marinization, engineering and consulting, and has a workforce of 140
employees and consultants in Stavanger and Aberdeen. Bennex has about 160 employees
in Norway (Bergen and Kongsberg), Scotland (Aberdeen) and the US and develops and
manufactures subsea equipment mainly for power solutions. The combined revenue of the
two companies is approximately EUR75 million. The purchase price is not disclosed. The
transaction is subject to the approval of the responsible antitrust authorities.

Subsea Technology Group (STG) backed by the oil and gas specialist private equity investor
HitecVision, has over the past three years built a diversified engineering, products and services
company within subsea, drilling & well, reservoir and process disciplines. "HitecVision's core
business is to buy, develop and sell quality companies to the right buyer," says HitecVision Senior
Partner and STG board member PÃ¥l M. Reed and adds: "The strong strategic match between
Siemens and Poseidon and Bennex will enable quicker realization of the companies' development
plans and the transaction should be very positive for employees, customer and owners."

"Subsea processing is a fast growing and technologically challenging part of upstream Oil & Gas,"
said Tom Blades, CEO of Siemens Oil & Gas Division. "In May 2010, we announced the
development of a subsea electrical grid to power seabed processing and production systems
including pumps and compressors. With the acquisition of Poseidon and Bennex, Siemens has
taken a major step to strengthen its in-house capabilities in marinization, subsea engineering and
consulting and assert itself as the leading developer of subsea power grid solutions on the back of
its traditional electrical engineering core-competence." Siemens anticipates that the subsea power grid market will enjoy a double digit growth especially in power grid applications, to become a multi
billion market in 2020.

The dilemma of demand growth exacerbated by mature field depletion is forcing oil and gas
companies to exploit offshore fields farther out to sea at ever greater water depths. Full-scale
subsea processing is a vital component in enabling the commercial viability of these fields that will
be brought on stream in the coming years around the globe in places such the Americas and West
Africa. One of the main objectives of deep water seabed processing is to counter the enormous
hydrostatic pressure, while closing the recovery gap compared to a traditional land based well.
Siemens' subsea power grid can be deployed in water depths of as much as 3,000 meters and is
an enabler in closing this gap, opening the way for a more reliable and safer offshore production
environment. "The acquisition will add to Siemens' capabilities, experience and credibility in
subsea engineering, equipment marinization, connection and penetration technology, which are
the main elements required to integrate our subsea power grid solution," added Blades.

Bennex is one of the leading suppliers of subsea distribution (hydraulic and electrical) systems,
fiber optic, electromagnetic and seismic applications. Poseidon is a subsea engineering and
consulting company capable of marinizing existing Siemens equipment and technology to subsea
environment, such as subsea control systems, transformers, switchgears, electric motors
automation and compressors along with other complementary elements such like cameras and
subsea electric valve actuators.

Siemens subsea solution includes transformers, switchgear and variable-speed drives along with
other elements, to power and control electric-driven pumps, compressors, and other processing
equipment. Siemens is already active in marinization of equipment such as the STC-ECO
compressor that completed a comprehensive factory test program in August 2010. This
compressor is a central feature of subsea processing. Siemens has accumulated extensive
experience in subsea applications such as Siemens Subsea Controller (SSC) operating for
Statoil´s Snorre project and the transformers in operation in Petrobras´ Carapeba oil field off the
Brazilian coast.

Siemens Energy Sector is the world's leading supplier of a complete spectrum of products, services and solutions for
the generation, transmission and distribution of power and for the extraction, conversion and transport of oil and gas. In
fiscal 2010 (ended September 30), the Energy Sector had revenues of approximately EUR25.5 billion and received new
orders totaling more than EUR30.1 billion and posted a profit of more than EUR3.3 billion. On September 30, 2010, the
Energy Sector had a work force of more than 88,000. Further information is available at: http://www.siemens.com/energy.

Subsea Technology Group is a diversified engineering and manufacturing company with focus within subsea, drilling &
well, reservoir and process disciplines. The group includes the companies Bennex, Poseidon, Ross Offshore, Altra
Energy and Well Processing and has key locations in Norway, Scotland and the US.
Further information is available at: stg-subsea.com

Siemens AG

Corporate Communications and Government Affairs

Wittelsbacherplatz 2, 80333 Munich

Germany

Media Relations: Eva-Maria Baumann

Telephone: +49 9131 18-3700

E-mail: eva-maria.baumann@siemens.com

Siemens AG

Energy Sector - Oil and Gas Division

Freyeslebenstr. 1, 91058 Erlangen, Germany

All Topics