PERMIAN BASIN, Texas (Big 2/Fox 24) – Schlumberger is selling their stake in the fracturing business.
The company announced on Aug. 31, they would sell their fracing operations to Liberty Oilfield Services.
Additionally, the company is also selling its pressure pumping, pumpdown perforating and Permian frac sand business to Liberty as well. In return, Schlumberger will receive a 37 percent equity interest in the combined company.
Pending regulatory approval, the sale is expected to close in the fourth quarter of 2020.
“I’m very proud we have reached this agreement to combine our OneStim business with a leader in North American hydraulic fracturing who shares a like-minded focus on customers, technology, people and our safety culture,” Schlumberger CEO Olivier Le Peuch said in a statement. “This partnership provides an ideal home for our OneStim business and its employees and is in line with out paital stewardship strategy while benefiting from future market upside through our equity stake. Alongside the comprehensive suite of services and products that Schlumberger continues to offer in North America lane, this partnership with Liberty will uniquely position us to leverage our technology and scale to significantly improve our customers’ performance.”
Schlumberger is just the most recent major player to bow out of the frac industry.
BP also announced in 2020 they would restructure their business model to focus more on other forms of sustainable energy and back out of fossil fuels.