Schlumberger Ltd. SLB has inked a joint venture (JV) agreement with BAUER Maschinen GmbH, an affiliated company of BAUER AG, to manufacture land drilling rigs and related products.
In the JV, Schlumberger and BAUER have an ownership of 49% and 51%, respectively. The JV will be responsible for the development and manufacture of land drilling rigs as well as related rig equipment for use in the oil, gas and geothermal sectors by Schlumberger and other third parties.
Schlumberger’s latest agreement is in sync with its strategy of providing state-of-the-art land rigs that will further enhance the company’s drilling technology portfolio. These will also facilitate Schlumberger’s customers to boost their drilling performance and lower well cost.
BAUER is a leading manufacturer of high quality foundation drilling equipment as well as provider of global rig manufacturing capabilities with facilities in Germany, the U.S., China, Far East and Russia.
Schlumberger is a premier oilfield services company that provides technology, project management and information services to the global oil and gas industry.
Schlumberger's strong balance sheet, technological leadership and efficient management are expected to prove beneficial for it in the long term. Moreover, the company’s efforts to increase its capacity in pressure pumping and strengthening deepwater activity in the Gulf of Mexico are likely to add to revenues going forward. While hydraulic fracturing pricing and land drilling activity remained depressed throughout North America, this was more than offset by the company’s superior technology, internal efficiency gains and size.
Currently, Schlumberger carries a Zacks Rank #3 (Hold). Some better-ranked players from the energy sector are Energy Transfer Equity, L.P. ETE, ReneSola Ltd. SOL and Boardwalk Pipeline Partners, LP BWP. Each of these stocks sports a Zacks Rank #1 (Strong Buy).
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