Subsea apparatus (10) for processing a well stream (2) and a method of processing a well stream subsea is described. In an embodiment, liquid (5) and gas (3) contained in the well stream (2) is separated. The separated gas (3) is cooled and the cooled gas (32) is combined with the separated liquid (5) to form a wet gas (52) for a compressor (90). An active cooling arrangement (30) may be used in one example to enhance the cooling effect provided by the cooler (30). Advantageously, the apparatus (10) can be arranged compactly, and may be provided on a subsea retrievable module.