New company targets North
America unconventional resource development
BAAR, Switzerland, March 24, 2017 /PRNewswire/ -- Weatherford and Schlumberger today announced
an agreement to create OneStimSM, a joint venture to
deliver completions products and services for the development of
unconventional resource plays in the
United States and Canada
land markets. The joint venture will offer one of the broadest
multistage completions portfolios in the market combined with one
of the largest hydraulic fracturing fleets in the industry.
Weatherford will contribute its
leading multistage completions portfolio, cost-effective regional
manufacturing capability, and supply chain. Schlumberger will
provide the joint venture with access to its industry-leading
surface and downhole technologies, efficient operational processes
and advanced geo-engineered workflows.
Schlumberger and Weatherford
will have 70/30 ownership of the joint venture, respectively. The
transaction is expected to close in the second half of 2017, and is
subject to regulatory approvals and other customary closing
conditions. 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.
Schlumberger will manage the joint venture and consolidate it
for financial reporting purposes.
Schlumberger Chairman and CEO Paal
Kibsgaard commented, "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.
OneStimSM is uniquely positioned to provide customers
with leading operational efficiency and best-in-class hydraulic
fracturing and completions technologies, while at the same time
significantly improving full-cycle shareholder returns from this
market."
Weatherford Chairman William E.
Macaulay said, "The OneStimSM joint venture
creates a leading unconventional products and services provider in
North America land. This
transaction will allow Weatherford
to deleverage its balance sheet while retaining a significant
exposure to the unconventional market. This transaction was
unanimously approved by the Board of Directors and will create
significant value for both parties."
Forward-Looking Statements
This news release contains forward-looking statements regarding
the joint venture and Weatherford.
These forward-looking statements include, among other things, the
joint venture and Weatherford's
strategies and priorities, and are also generally identified by the
words "believe," "project," "expect," "anticipate," "estimate,"
"outlook," "budget," "intend," "strategy," "plan," "guidance,"
"may," "should," "could," "will," "would," "will be," "will
continue," "will likely result," and similar expressions, although
not all forward-looking statements contain these identifying words.
Such statements are based upon Weatherford's current beliefs and are subject
to significant risks, assumptions and uncertainties. Should one or
more of these risks or uncertainties materialize, or underlying
assumptions prove incorrect, actual results of Weatherford or the joint venture may vary.
Readers are also cautioned that forward-looking statements are only
predictions and may differ materially from actual future events or
results. Forward-looking statements are also affected by the risk
factors described in the Company's Annual Report on Form 10-K for
the year ended December 31, 2016 and
those set forth from time-to-time in the Company's other filings
with the Securities and Exchange Commission ("SEC"). We undertake
no obligation to correct or update any forward-looking statement,
whether as a result of new information, future events, or
otherwise, except to the extent required under federal securities
laws.
About Weatherford
Weatherford is one of the
largest multinational oilfield service companies providing
innovative solutions, technology and services to the oil and gas
industry. The Company operates in over 90 countries and has a
network of approximately 900 locations, including manufacturing,
service, 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.
About Schlumberger
Schlumberger is the world's leading provider of technology for
reservoir characterization, drilling, production, and processing to
the oil and gas industry. Working in more than 85 countries and
employing approximately 100,000 people who represent over 140
nationalities, Schlumberger supplies the industry's most
comprehensive range of products and services, from exploration
through production, and integrated pore-to-pipeline solutions that
optimize hydrocarbon recovery to deliver reservoir performance.
Schlumberger Limited has principal 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 Contacts
Christoph Bausch – Weatherford, Acting Chief Executive Officer,
EVP and CFO
Tel: +1 713 836 4615
Karen David-Green – Weatherford, Vice President Investor
Relations, Marketing & Communications
Tel: +1 713 836 7430
Schlumberger Contacts
Investors
Simon Farrant –
Schlumberger Limited, Vice President of Investor Relations
Joy V. Domingo – Schlumberger
Limited, Manager of Investor Relations
Tel: +1 713 375 3535
investor-relations@slb.com
Media
Joao Felix –
Schlumberger Limited, Director of Corporate Communication
Tel: +1 713 375 3494
communication@slb.com
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