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.
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.
2022-08-09 - The decarbonization plan of Ecopetrol, Colombia’s largest oil and gas producer, includes a commitment to produce 1 million tonnes per annum of green, blue and white hydrogen by 2040.
2022-08-09 - Proceeds from the Production Lending loan will be used by the private, Midland, Texas-based oil and gas company to drill and complete six horizontal wells in the northern Midland Basin.
2022-08-09 - The Capricorn Sun tanker loaded Mars Sour crude off the Louisiana coast in the U.S. and discharged at Germany’s port of Rostock on Aug. 3. The tanker was chartered by Shell Plc, according to two sources and Refinitiv ship tracking data
2022-08-09 - With the oil and gas industry going deeper, faster, and farther, the need for power sections that define the leading edge and deliver unmatched performance in corrosive, high temperature, high torque, or high wear situations is evident.
2022-08-09 - To help stabilize the fluctuating cost of electrifying industrial activities, Grey Rock is investing $100 million in Conduit Power and its electrification services.