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Schlumberger acquires Novatek

Written by  Wednesday, 02 September 2015 08:16

Schlumberger announced its takeover of US-based Novatek Inc. and Novatek IP, LLC. that will provide a new platform to improve drilling performance to the growing oil services giant’s portfolio.

Schlumberger's StingBlade. Image from Schlumberger.

Schlumberger and Novatek already have a cooperative relationship that created Schlumberger’s StingBlade conical diamond element bit, In addition, the two are collaborating on new ideas that are being incorporated into Schlumberger’s newest drilling technology offerings.

“Novatek’s synthetic diamond manufacturing technology is already a key component of our drillbit offering,” said Khaled Al Mogharbel, president, Schlumberger Drilling Group. “With the addition of Novatek, we will enhance our research, engineering and manufacturing capabilities and continue to work with our customers to accelerate field adoption of these innovative drilling technologies.”

David Hall, founder and president, Novatek added: “Since my father, Tracy Hall, synthesized the first manmade diamond 60 years ago, synthetic diamond technology has revolutionized the diamond cutting and drilling industries. Our new relationship with Schlumberger will help us to continue this legacy of innovative technology development.”

Novatek’s 60-year history includes more than 600 patents in product development. The core development its technologies will continue at the company’s lab in Provo, Utah.

Just last week, Schlumberger entered into a deal to acquire Cameron International in a US$14.8 billion stock and cash deal. The deal, should it be approved, will offer the industry’s first complete drilling and productions systems.

Schlumberger is expecting pretax synergies of about $300 million in the first year, and $600 million in the second year.

Just like with Novatek, Schlumberger and Cameron collaborated on several projects, including the November 2012 creation of their OneSubsea joint venture.

Schlumberger’s deal with Cameron is expected to close in 1Q 2016.

Read more:

Schlumberger to take Cameron for US$14.8 billion

Schlumberger introduces StingBlade

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