US-based GE Oil & Gas has completed the acquisition of Lufkin Industries, which provides artificial lift technologies for the oil and gas industry, for about $3.3bn.
The acquisition will expand GE Oil & Gas’ artificial lift capabilities, with solutions for a wide variety of well types and technology for production automation and optimisation in the drilling industry.
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GE currently uses artificial lifts with an electric submersible pump. The company will now have expanded capabilities such as rod lift, gas lift, plunger lift, hydraulic lift, progressive cavity pumps and an array of well controls and software.
GE Oil & Gas CEO Daniel C Heintzelman said that artificial lift technologies can enhance potential of a new well and optimise production of a mature one.
"With Lufkin’s technologies, highly skilled employees and automation and optimisation solutions, GE can now offer a more complete portfolio that address a wider variety of well types at all stages of the production life cycle," he said.
Artificial lift technology is used in around 94% of oil-producing wells in the world. It allows resources to be lifted to the surface from reservoirs with low pressure.
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By GlobalDataThe global artificial lift sector is anticipated to be worth almost $13bn by the end of the year, with the development of unconventional shale plays and liquids-rich resource plays.
Image: Lufkin Reverse Mark II pumping unit. Photo: courtesy of Lufkin Industries.
