Schlumberger Ltd. (NYSE: SLB) and Weatherford International Plc (NYSE: WFT) agreed to create OneStimSM, a joint venture (JV) to deliver completions products and services for the development of unconventional resource plays in the U.S. and Canada land markets, the companies said March 24.
UPDATE: Schlumberger, Weatherford JV Creates $3.8 Billion Frack Leviathan
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.
The JV will offer "one of the broadest multistage completions portfolios in the market combined with one of the largest hydraulic fracturing fleets in the industry," according to the release.
Schlumberger and Weatherford will have 70/30 ownership of the JV, respectively. Schlumberger will also manage the JV and consolidate it for financial reporting purposes.
Weatherford will contribute its multistage completions portfolio, cost-effective regional manufacturing capability and supply chain. Schlumberger will provide the JV with access to its surface and downhole technologies, efficient operational processes and advanced geo-engineered workflows.
The JV will allow Weatherford to deleverage its balance sheet while retaining a "significant exposure" to the unconventional market, William E. Macaulay, Weatherford's chairman, said in a statement.
The transaction is expected to close in the second half of 2017, and is subject to regulatory approvals and other customary closing conditions.
Recommended Reading
US Drillers Add Oil, Gas Rigs for First Time in Five Weeks
2024-04-19 - The oil and gas rig count, an early indicator of future output, rose by two to 619 in the week to April 19.
Strike Energy Updates 3D Seismic Acquisition in Perth Basin
2024-04-19 - Strike Energy completed its 3D seismic acquisition of Ocean Hill on schedule and under budget, the company said.
FERC Again Approves TC Energy Pipeline Expansion in Northwest US
2024-04-19 - The Federal Energy Regulatory Commission shot down opposition by environmental groups and states to stay TC Energy’s $75 million project.
Eversource to Sell Sunrise Wind Stake to Ørsted
2024-04-19 - Eversource Energy said it will provide service to Ørsted and remain contracted to lead the onshore construction of Sunrise following the closing of the transaction.
Shipping Industry Urges UN to Protect Vessels After Iran Seizure
2024-04-19 - Merchant ships and seafarers are increasingly in peril at sea as attacks escalate in the Middle East.