Weatherford and Schlumberger to form OneStim joint venture

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Schlumberger will provide its surface and downhole technologies, operational processes and geo-engineered workflows, while Weatherford will contribute its multistage completions portfolio, regional manufacturing capability and supply chain.

Under the terms of the 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 US$535 million cash payment from Schlumberger.

Schlumberger will manage the joint venture and consolidate it for financial reporting purposes.

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.”

Weatherford chairman William Macaulay said: “This transaction will allow Weatherford to deleverage its balance sheet while retaining a significant exposure to the unconventional market.”

The deal is expected to close in the second half of 2017.