Weatherford Sells US Fracking Unit to Schlumberger
Weatherford International plc (NYSE: WFT) has sold its U.S. pressure pumping and pump-down perforating assets, used in hydraulic fracturing of oil and gas wells, to Schlumberger Ltd. for $430 million.
The revised deal is an asset sale, rather than the previously proposed joint venture.
Schlumberger will take ownership of Weatherford’s U.S. pressure pumping and pump-down perforating-related facilities and supplier and customer contracts.
Approximately 100 Weatherford employees associated with the pressure pumping and pump-down perforating businesses will transfer to Schlumberger.
Weatherford will retain its well completions portfolio, manufacturing capability and supply chain, and will continue to participate in the completions markets in North America as well as globally.
Mark A. McCollum, President and Chief Executive Officer of Weatherford, said, “Although not as originally anticipated, this transaction delivers cash proceeds that enable our Company to begin the deleveraging process and, coupled with our transformation plans, will lead to a leaner organization with lower debt and significantly higher profit margins.”
Weatherford, based in Baar, Switzerland, provides solutions, technology and services to the oil and gas industry, with 860 locations and 29,500 employees in over 90 countries. www.weatherford.com