Schlumberger to enter joint venture with Weatherford

Schlumberger has partnered with oilfield service company Weatherford to form OneStim, a joint venture to bring completions products and services for developing unconventional resources in the United States and Canadian land markets.

Weatherford will deliver its multistage completions portfolio, regional manufacturing and supply chain capabilities while Schlumberger will bring its large hydraulic manufacturing fleets, access to its surface and downhole technologies, efficient operational processes and advanced geo-engineered workflows.

Schlumberger will have a 70 per cent ownership, while Weatherford have the remaining 30 per cent, with the deal set to close by the second half of this year.

Under the agreement, both companies will contribute all their North American land hydraulic fracturing pressure pumping assets, multistage completions, and pump-down perforating businesses.

Schlumberger, which will manage the joint venture, will also provide Weatherford a one time $535 million cash payment.

Schlumberger chairman and CEO Paal Kibsgaard said, “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.”

He added that OneStim is also positioned to provide operators operational efficiency and best-in-class hydraulic fracturing and completions technologies.