Oil field service companies Schlumberger and Weatherford will form a joint venture that aims to help North American drillers pump oil and gas.
The companies said on Friday the joint venture, OneStim, will specialize in providing technologies and services that stimulate shale oil and gas wells such as hydraulic fracturing, the process of blasting water, chemicals and sand into the earth to break open shale rock.
They plan to combine Schlumberger’s large fracking fleet of high-horsepower pumps and Weatherford technologies used to stimulate multiple separate horizontal zones within shale wells. Schlumberger would own 70 percent of the joint venture, with the rest owned by Weatherford.
As part of the deal, which is expected to close in the second half of the year, Schlumberger will pay $535 million in cash.