Rockwell Automation and Schlumberger form JV for digital oilfield

diggiRockwell Automation has partnered with Schlumberger, one of the leading providers of technology for reservoir characterisation, drilling, production and processing to the oil and gas industry, to create a new joint venture, Sensia

The Sensia joint venture will be the first fully integrated provider of measurement solutions, domain expertise and automation to the oil and gas industry. It aims to provide scalable, cloud and edge-enabled process automation including information and process safety solutions.

Under the terms of the agreement, Sensia will operate as an independent entity, with Rockwell Automation owning 53 per cent and Schlumberger owning 47 per cent of the joint venture.

“Oilfield operators strive to maximise the value of their investments by safely reducing the time from drilling to production, optimising the output of conventional and unconventional wells and extending well life,” said Blake Moret, chairman and CEO at Rockwell Automation.

“As oil and gas producers strive to improve productivity, we will bring the value of the Connected Enterprise to life for them. Sensia will provide complete lifecycle and process automation solutions from well to terminal, including industry-leading oilfield technology and expertise,” added Moret.

“Sensia will create a leading technology provider that will further drive optimisation of E&P oilfield assets,” commented Paal Kibsgaard, chairman and CEO at Schlumberger.

Sensia is expected to generate annual revenue of US$400mn and will employ approximately 1,000 team members serving customers in more than 80 countries, with global headquarters in Houston, Texas.

As part of the transaction, Rockwell Automation will make a US$250mn payment to Schlumberger at closing, which will be funded by cash on hand.

Rockwell Automation discussed the joint venture during its presentations at the Citigroup Global Industrials Conference on 20 February 2019 and the Barclays Industrial Select Conference on 21 February 2019.

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