Schlumberger, Weatherford in JV

Oilfield services giants Schlumberger and Weatherford late on Friday announced they would create a hydraulic fracturing joint venture for US shale operations.

To be called OneStim, the new entity will completion products and services and, at close to 3 million horsepower, an hydraulic fracturing pump fleet that rivals that of competitor Halliburton.

Schlumberger, which will hold 70% in OneStim, will provide surface and downhole technologies, while 30% shareholder Weatherford will offer multistage completions and manufacturing capability.

Weatherford in late-2016 halted the operations of its hydraulic fracturing business unit as part of restructuring efforts necessitated by the drop in activity. Last month, the company said it was looking to sell or merge the business.

Schlumberger will make a one-time USD 535-million payment to Weatherford as part of the agreement.

“The OneStim 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,” Weatherford Chairman William E. Macaulay said in a joint press release.

His counterpart at Schlumberger, Paal Kibsgaard, said, “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.”