US-based Cameron and Schlumberger have formed a joint venture (JV), to manufacture and develop products, systems and services for the subsea oil and gas industry.
Cameron and Schlumberger will have a 60% and 40% ownership respectively in the new entity, called ‘OneSubsea‘.
Under the terms of the formation agreement, Cameron will contribute its existing subsea division and receive $600m from Schlumberger, which in return will provide its Framo, Surveillance, Flow Assurance and Power and Controls businesses and services for the joint venture.
Cameron chairman, president and CEO, Jack Moore, said: "Our new venture with Schlumberger provides a powerful marriage of their oil field services technology and our subsea equipment heritage."
The JV will be managed by Cameron and it will also consolidate OneSubsea for financial reporting purposes by reflecting a minority interest in its financial statements for Schlumberger’s interest in the venture.
Schlumberger CEO, Paal Kibsgaard, said: "This new joint venture, which combines the forces of two world-class companies, is uniquely positioned to optimise complete subsea production systems and help our customers improve production and recovery from their subsea developments."
OneSubsea will offer integration and optimisation of the entire production system, to bring a positive change in reservoir recovery during the lifespan of oil fields, according to the partners.
The integration of the production system will be done by combining superior reservoir knowledge with wellbore technologies and subsea technologies, which together are expected to deliver improved productivity, reliability and integrity.
The key focus of the JV, however, will be the strengthening research and engineering investment in the subsea developments, the companies said.
Suisse has acted as financial advisor to Cameron, while GoldmanSachs acted as financial advisor to Schlumberger in the formation of JV. The partnership deal is subject to regulatory approvals and other customary closing conditions.
Image: The headquarters of Schlumberger in Houston, US. Photo courtesy of WhisperToMe.