Schlumberger Ltd. is selling its North America fracking business to Liberty Oilfield Services Inc. as the Houston-based oilfield services giant shifts its focus away from the U.S. shale business.

Alongside peers Halliburton Co. and Baker Hughes Co., Schlumberger has begun planning for a significantly leaner future following the worst price cash in decades, leading the big three service providers away from the high-cost shale industry.

In a joint release on Sept. 1, Schlumberger said it agreed to contribute OneStim, its onshore hydraulic fracturing business in the U.S. and Canada, to Denver-based pressure pumper Liberty Oilfield Services. In exchange, Schlumberger will receive a 37% equity interest in the combined company, which is expected to have a $1.2 billion market cap.

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