SLB Schlumberger Ltd

   By Dominic Chopping 
 

Shearwater GeoServices has Wednesday agreed to buy Schlumberger Ltd.'s (SLB) marine seismic-data business in a cash-and-shares deal worth $600 million.

Shearwater GeoServices--a joint venture between GC Rieber Shipping ASA (RISH.OS) and Rasmussengruppen AS--currently operates a fleet of four vessels that use seismic technology to map oil-and-gas reservoirs beneath the sea bed. It will acquire the marine seismic acquisition assets and operations of WesternGeco, the geophysical services product line of Schlumberger which comprises 10 seismic acquisition vessels, two source vessels, marine technology and manufacturing facilities.

"We will combine two strong complementary businesses and create an industry-leading full-service geophysical company with a solid financial and strategic platform," says Irene Waage Basili, Chief Executive of Shearwater.

"Our strategy has been to build a stronger company during the downturn, and we are very pleased to see the commitment made by our owners, which enables this transaction."

Schlumberger will receive cash consideration based on an enterprise value of $600 million plus a 15% stake in Shearwater. It will also be entitled to payments linked to future vessel usage.

An additional $50 million of cash will be injected in Shearwater to ensure a more robust financial platform, bringing the total cash funding requirement for the proposed transaction to $650 million. This will be funded by $325 million in new cash equity and $325 million in debt financing.

Following the deal, GC Rieber Shipping will own 20% in the combined company with Rasmussengruppen holding 65% and Schlumberger 15%.

GC Rieber Shipping expects to book a non-cash gain of $32 million as a result of the transaction.

The deal is subject to regulatory approvals but the parties expect it to close in the fourth quarter of 2018.

Write to Dominic Chopping at dominic.chopping@wsj.com; Twitter: @domchopping @WSJNordics

(END) Dow Jones Newswires

August 22, 2018 05:38 ET (09:38 GMT)

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