Schlumberger and Weatherford announced an agreement to create the OneStimSM, a joint venture to provide products and completion services for the development of unconventional resource deposits on land markets in the United States and Canada. The joint venture will offer one of the broadest portfolios of multistage completions market, along with one of the largest hydraulic fracturing fleets in the industry.
Weatherford contribute its portfolio leader in completions multistage, its profitable regional production capacity and supply chain. Schlumberger will provide the joint venture access to its surface technologies and background pit industry leaders, efficient operational processes and advanced geo-engineering workflows.
The participation of Schlumberger and Weatherford in the joint venture will be 70/30 respectively. It is expected the transaction to be completed in the second half of 2017, subject to regulatory approval and to customary closing conditions. According to the terms of the constitution agreement, Schlumberger and Weatherford will contribute all of their respective resources by pumping hydraulic fracturing pressure on land in América do Norte, multistage completions and drilling companies with pumping. Weatherford will also get Schlumberger a single payment of US $ 535 million in cash. Schlumberger will manage the joint venture and consolidate it in terms of financial reporting.
President and CEO of Schlumberger, Paal Kibsgaard commented, "The joint venture creates a new industry leader in terms of hydraulic power and completions multistage technology on land in América do Norte through its dimensions, offers a platform providing cost-effective and highly competitive services. The OneStimSM has the unique position to offer customers leading operational efficiency and completion technologies and hydraulic fracturing of first class, while significantly improves the full cycle of returns of the shareholders of this market. "
The president of Weatherford William E. Macaulay said: "OneStimSM joint venture creates a leading provider of unconventional products and services on land in América do Norte. This transaction will allow Weatherford reduce the indebtedness of its balance sheet while retaining significant exposure to non-conventional market. The transaction was unanimously approved by the board of directors and will create significant value for both parties. "
Schlumberger is the world's largest supplier of technology for characterization, drilling, production and processing tanks for the oil and gas industry. Operating in more than 85 countries and approximately 100,000 employees in more than 140 nationalities, Schlumberger provides the widest range of products and services market, from exploration to production, as well as integrated solutions "from the well to the pipeline" that optimize oil recovery reservoir to provide performance.
Schlumberger Limited has offices in Paris, Houston, London and The Hague and reported revenues of $ 27.81 billion in 2016. For more information, visit www.slb.com.
Weatherford is one of the largest multinational oilfield services, providing innovative solutions, technology and services for the oil and gas industry. The company operates in over 90 countries and has a network of approximately 900 facilities, including manufacturing, services, 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 given to the term in Section 27A of the US Securities Act of 1933 (Securities Act), and Section 21E of the US Securities Markets Act (Securities Exchange Act) of 1934 with your changes. Opinions, estimates and projections regarding the expected benefits of the proposed transaction; the planned timing of completion of the transaction; the ability of the parties 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 about future expectations, beliefs, plans, objectives, financial conditions, assumptions or future events and performance of the parties or the joint venture are forward-looking statements within the meaning of the federal securities laws. These statements are subject, among other things, to the satisfaction of the proposed transaction closing conditions, the risk that the proposed transaction does not occur, the negative effects of pending proposed transaction, the ability to realize the expected benefits of the proposed transaction, the deadline to consummate the proposed transaction and other risk factors contained in the most recent Form 10-K Schlumberger and Weatherford, as well as other filings of each company with the SEC available at the SEC's website (http: // www .sec.gov). Actual results may differ materially from those anticipated, estimated or projected. Forward-looking statements are only valid for the date they were made and the parties assume no obligation to publicly update or revise any of them in light of new information, future events or any other circumstance.
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Source: BUSINESS WIRE