Schlumberger sold its fracking unit to Denver-based Liberty Oilfield Services.
In an announcement this week, the two companies said they were combining hydraulic fracturing operations to form a combined company.
The two announced they reached an agreement in which Schlumberger contributes its onshore hydraulic fracturing business in the U.S. and Canada to Liberty in exchange for a 37% equity interest in the combined company.
The contribution by Schlumberger includes its pressure pumping, pumpdown perforating and Permian frac sand businesses.
Schlumberger Chief Executive Officer Olivier Le Peuch commented, “This partnership provides an ideal home for our OneStim business and its employees and is in line with our capital stewardship strategy while benefiting from future market upside through our equity stake.”
OneStim is Schlumberger’s onshore hydraulic fracturing business in the United States and Canada, which includes its pressure pumping, pumpdown perforating and Permian frac sand businesses. The business was previously envisioned as a joint venture with Weatherford International PLC.
The transaction is expected to close in the fourth quarter of 2020 and is subject to Liberty stockholder approval, regulatory approvals and other customary closing conditions. Following the closing of the transaction, Liberty will offer one of the most innovative suites of completion services and technologies to operators in onshore North America. Liberty will continue to be led by its current management team.
Source: BusinessWire