Schlumberger has agreed to sell its onshore hydraulic fracturing business in the US and Canada (OneStim) to Liberty Oilfield Services, in exchange for a 37% equity interest in the combined company.
Schlumberger has agreed to sell its onshore hydraulic fracturing business in the US and Canada (OneStim) to Liberty Oilfield Services, in exchange for a 37% equity interest in the combined company.
The deal includes OneStim’s pressure pumping, pumpdown perforating, and Permian frac sand businesses and the new company will deliver completion services at unconventional resource plays in the US and Canada land markets.
SLB and Liberty claimed that the deal will create one of the largest pressure pumping companies in North America, with 2019 combined revenue of $5.2 billion, combined market capitalization of $1.2 billion, no net debt and significant liquidity.
‘Expanded technology and operating capabilities will further increase E&P operator efficiencies, enhance shale asset economics and raise the bar for sustainable and environmentally conscious frac operations,’ said a joint SLB/Liberty statement.
The company will also offer a ‘world-class completions data and technology portfolio’ including the most comprehensive production and completions database, Big Data analytics, advanced software for reservoir modelling and designing optimal completions, and frac fleet automation and electrification, the statement added.
The agreement will provide for additional collaboration on areas such as subsurface expertise, downhole completions equipment, frac trees and flowback technology.
The transaction is expected to close before the end of the year.
