US industrial automation and information specialist Rockwell Automation has announced a joint venture agreement with oilfield services company Schlumberger.

The companies described the new entity, Sensia, as “the first fully integrated digital oilfield automation solutions provider.” The transaction is expected to close in the summer of 2019, subject to regulatory approvals.

Sensia will offer a range of measurement solutions and automation services to the oil and gas industry. These services include scalable, cloud and edge-enabled process automation and lifecycle management automation solutions (known collectively as the Connected Enterprise), helping oil and gas companies to operate efficiently.

Sensia is expected to generate annual revenue of $400m, employing approximately 1,000 team members and serving customers in more than 80 countries.

Rockwell Automation chairman and CEO Blake Moret said: “Oilfield operators strive to maximise the value of their investments by safely reducing the time from drilling to production, optimising output of conventional and unconventional wells, and extending well life.”

“Currently, no single provider exists that offers the end-to-end solutions and technology platform that address these challenges. Sensia will be uniquely positioned to connect disparate assets and reduce manual processes with secure, scalable solutions that are integrated into one technology platform.

“As oil and gas producers strive to improve productivity, we will bring the value of the Connected Enterprise to life for them. Sensia will provide complete lifecycle and process automation solutions from well to terminal, including industry-leading oilfield technology and expertise.”

Under the terms of the agreement, Sensia will operate as an independent entity, with Rockwell owning 53% of the venture and Schlumberger owning 47%. Rockwell will make a payment of $250m to Schlumberger at closing.

Schlumberger chairman and CEO Paal Kibsgaard said: “Sensia will create a leading technology provider that will further drive optimisation of E&P oilfield assets. This joint venture is the next step in our vision to offer our customers smart, connected devices with rich diagnostic capabilities, coupled with measurement, automation and analytics that improve oilfield operations, facilitate business decisions and reduce total cost of ownership throughout the life of a field.”