Oilfield services company Schlumberger has agreed to sell some of its non-core drilling assets to Wellbore Integrity Solutions (WIS), affiliate of Rhône Capital, for a sum of around $400m.
As part of the deal, Schlumberger will be offloading the businesses and associated assets of DRILCO, Thomas Tools, and Fishing & Remedial services, and also part of a manufacturing plant in Houston, Texas to the Rhône Capital affiliate.
WIS is engaged in acquiring assets and technologies with the objective of offering a comprehensive suite of products and services that bring down the life cycle risk of oil, gas and geothermal wells.
WIS CEO David MacNeill said: “Our customers will benefit from our expansion as an independent service and product supplier with a strong global footprint.
“We are very proud to acquire these historic companies that have been delivering quality products and services to the oil and gas industry for over 60 years.”
The company plans to operate the acquired businesses as a global, customer-focused provider of drilling tubulars services, tubing work strings, rentals and accessories. The businesses will also serve the oilfield services industry by offering fishing and remedial services for drilling, intervention and abandonment activities.
Schlumberger bits & drilling tools president Kristi Vilay said: “The DRILCO, Thomas Tools, and Fishing & Remedial businesses will have greater opportunities for growth uniquely positioned within a strategic buyer’s portfolio.
“This divestiture will enable Schlumberger to focus on its core drilling strategy, including the development of automation technologies that can be enhanced by digital enablement.”
The transaction, which is subject to regulatory approvals and other customary closing conditions, is likely to be completed by the year end.
Earlier this month, the oilfield services company launched a new look-ahead-while-drilling service IriSphere, which has been designed to reduce drilling risks and boost drilling efficiency.
Last month, Schlumberger agreed to sell its onshore drilling rigs business in Kuwait, Oman, Iraq and Pakistan, to Arabian Drilling Company (ADC) for SAR1.56bn ($420m).
Earlier this year, the oilfield services company announced a joint venture with Rockwell Automation, called Sensia, which will provide fully integrated digital automation solutions to the oil and gas sector.