Schlumberger and Weatherford to Form OneStim Joint Venture
March 24 2017 - 4:45PM
Business Wire
New company targets North America unconventional resource
development
Schlumberger and Weatherford today announced an agreement to
create OneStimSM, a joint venture to deliver completions products
and services for the development of unconventional resource plays
in the United States and Canada land markets. The joint venture
will offer one of the broadest multistage completions portfolios in
the market combined with one of the largest hydraulic fracturing
fleets in the industry.
Weatherford will contribute its leading multistage completions
portfolio, cost-effective regional manufacturing capability, and
supply chain. Schlumberger will provide the joint venture with
access to its industry-leading surface and downhole technologies,
efficient operational processes and advanced geo-engineered
workflows.
Schlumberger and Weatherford will have 70/30 ownership of the
joint venture, respectively. The transaction is expected to close
in the second half of 2017, and is subject to regulatory approvals
and other customary closing conditions. Under the terms of the
formation agreement, Schlumberger and Weatherford will contribute
all their respective North America land hydraulic fracturing
pressure pumping assets, multistage completions, and pump-down
perforating businesses. Weatherford will also receive a one-time
$535 million cash payment from Schlumberger.
Schlumberger will manage the joint venture and consolidate it
for financial reporting purposes.
Schlumberger Chairman and CEO Paal Kibsgaard commented, “The
joint-venture creates a new industry leader in terms of hydraulic
horsepower and multistage completions technologies in North America
land, which through its scale offers a cost-effective and highly
competitive service delivery platform. OneStimSM is uniquely
positioned to provide customers with leading operational efficiency
and best-in-class hydraulic fracturing and completions
technologies, while at the same time significantly improving
full-cycle shareholder returns from this market.”
Weatherford Chairman William E. Macaulay said, “The OneStimSM
joint venture creates a leading unconventional products and
services provider in North America land. This transaction will
allow Weatherford to deleverage its balance sheet while retaining a
significant exposure to the unconventional market. This transaction
was unanimously approved by the Board of Directors and will create
significant value for both parties.”
About Schlumberger
Schlumberger is the world’s leading provider of technology for
reservoir characterization, drilling, production, and processing to
the oil and gas industry. Working in more than 85 countries and
employing approximately 100,000 people who represent over 140
nationalities, Schlumberger supplies the industry’s most
comprehensive range of products and services, from exploration
through production, and integrated pore-to-pipeline solutions that
optimize hydrocarbon recovery to deliver reservoir performance.
Schlumberger Limited has principal offices in Paris, Houston,
London and The Hague, and reported revenues of $27.81 billion in
2016. For more information, visit www.slb.com.
About Weatherford
Weatherford is one of the largest multinational oilfield service
companies providing innovative solutions, technology and services
to the oil and gas industry. The Company operates in over 90
countries and has a network of approximately 900 locations,
including manufacturing, service, research and development, and
training facilities and employs approximately 30,000 people. For
more information, visit www.weatherford.com and connect with
Weatherford on LinkedIn, Twitter, YouTube and Facebook.
This press release contains “forward-looking statements” within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. The opinions, forecasts and projections regarding the
expected benefits of the proposed transaction; the expected timing
of the completion of the transaction; the parties’ ability to
complete the transaction considering the various regulatory
approvals and other closing conditions; future opportunities for
the joint venture and its products and services; and any other
statements regarding the parties’ or the joint venture’s future
expectations, beliefs, plans, objectives, financial conditions,
assumptions or future events or performance, are forward-looking
statements within the meaning of the federal securities laws. These
statements are subject to, among other things, satisfaction of the
closing conditions to the proposed transaction, the risk that the
proposed transaction does not occur, negative effects from the
pendency of the proposed transaction, the ability to realize
expected benefits from the proposed transaction, the timing to
consummate the proposed transaction, and other risk factors
contained in Schlumberger’s and Weatherford’s most recent Forms
10-K as well as each company’s other filings with the SEC available
at the SEC’s Internet site (http://www.sec.gov). Actual results may
differ materially from those expected, estimated or projected.
Forward-looking statements speak only as of the date they are made,
and the parties undertake no obligation to publicly update or
revise any of them in light of new information, future events or
otherwise.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170324005632/en/
Schlumberger LimitedInvestorsSimon Farrant – Schlumberger
Limited, Vice President of Investor RelationsJoy V. Domingo –
Schlumberger Limited, Manager of Investor RelationsTel: +1 713 375
3535investor-relations@slb.comChristoph Bausch – Weatherford,
Acting Chief Executive Officer, EVP and CFOTel: +1 713 836
4615Karen David-Green – Weatherford, Vice President Investor
Relations, Marketing & CommunicationsTel: +1 713 836
7430MediaJoao Felix – Schlumberger Limited, Director of
Corporate CommunicationTel: +1 713 375
3494communication@slb.com
Schlumberger (NYSE:SLB)
Historical Stock Chart
From Aug 2024 to Sep 2024
Schlumberger (NYSE:SLB)
Historical Stock Chart
From Sep 2023 to Sep 2024