Sea Discovery

Petrofac and Schlumberger Sign Co-operation Agreement

Image: Schlumberger Petrofac and Schlumberger announced today that their Integrated Energy Services (IES) and Schlumberger Production Management (SPM) divisions respectively have signed a Co-operation Agreement ('the Agreement') under which these divisions will establish a working relationship to deliver integrated and high-value production projects in the emerging and growing production services and production enhancement market.

"Schlumberger's subsurface knowledge, production engineering, well construction and project management services coupled with Petrofac's surface facility design, installation and ongoing operational field management create a life-of-field approach coupled with a performance-focused commercial model to optimize asset development and overall value," said Miguel Galuccio, president, Schlumberger Production Management. "Schlumberger and Petrofac share a common global culture that promotes the complementary nature of their respective products and services and together will provide a one-stop shop for clients in emerging field development and asset management services."

Schlumberger and Petrofac have complementary skill sets and execution capabilities. Both have built these through subsurface knowledge, facilities expertise and operational experience in integrated asset management with IES having particular strengths in facilities, engineering and O&M and project management while SPM has particular strengths in subsurface knowledge, production engineering, well construction, and project and asset management.

Andy Inglis, chief executive, Petrofac IES commented, "Petrofac has always sought to partner selectively with companies that enable us to enhance our service offering to customers, and with Schlumberger we are able to combine our capabilities with those of a world leader in the subsurface domain with an unrivalled track record for technological innovation. The creation of this framework will enable us to bid jointly for projects of a scale that we would not pursue independently, and to develop them at a much faster pace. Petrofac and Schlumberger have a common approach and I am tremendously excited by the scope of the opportunities we see for our combined capabilities."

Both companies will deploy their own capital in these production enhancement projects and neither company will seek to book reserves or production. The market opportunity for the collaboration is significant as major resource holders seek to develop discovered low-risk reserves against an industry environment characterized by a shortage of capability and capacity.

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