Two oilfield services (OFS) players on Monday reported that they have completed a deal that will influence the delivery of pressure pumping in North America.
Schlumberger (NYSE: SLB) and Liberty Oilfield Services Inc. (NYSE: LBRT) revealed that they completed a transaction on Dec. 31, 2020, that contributes Schlumberger’s OneStim onshore hydraulic fracturing business in the United States and Canada to Liberty. The agreement covers OneStim’s pressure pumping, pumpdown perforating and Permian frac sand businesses and gives Schlumberger a 37-percent equity interest in Liberty, the firms stated.
A Bloomberg article posted to Rigzone last September describes the then-pending deal for Schlumberger as “a massive reversal from its North American buying binge over the past few years.” The news agency added that the transaction would more than double the size of Liberty’s frac fleet.
Liberty’s existing management team will continue to lead the company, Liberty and Schlumberger stated Monday.
“Today, Liberty has laid the foundation for a new era of technology and sustainability in the oil and gas industry,” remarked Liberty Chairman and CEO Chris Wright. “Together, the talent and technology at Liberty enable us to execute on this responsibility and we are excited to welcome our new employees and customers to the Liberty family. Our expanded technology portfolio, dedicated team of professionals and breadth of operations form the foundation for us to achieve greater innovation and efficiency to deliver the best service to our customers and returns to our shareholders.”
Two Schlumberger representatives have joined Liberty’s board in conjunction with the closing, the companies noted. The new Liberty board members include:
- Simon Ayat, Schlumberger senior strategic advisor and former executive vice president and CFO
- James R. McDonald, president of Schlumberger’s Americas Land unit.
“This transaction positions Schlumberger to benefit from the strong recovery already underway in North American shale activity,” commented Schlumberger CEO Olivier Le Peuch. “Our experience with Liberty over the past few months has confirmed our belief that this is the right combination for the future. We are proud to participate in the North America market with an organization that combines scale, technology, customer portfolio and talent unmatched in the industry. We look forward to realizing the synergies and to leverage our alliance agreement for further technology collaboration with Liberty.”
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