Schlumberger, Rockwell Form Automation JV

Industrial automation and information company Rockwell Automation (ROK) and oilfield services provider Schlumberger (SLB) have teamed up to create what they're calling the first fully integrated digital oilfield automation solutions provider.

The new Houston based joint venture, Sensia, is expected to begin serving customers in the summer of 2019, subject to regulatory approvals and other customary conditions.

“Oilfield operators strive to maximize the value of their investments by safely reducing the time from drilling to production, optimizing output of conventional and unconventional wells and extending well life,” said Blake Moret, Chairman and CEO, Rockwell Automation. “Currently, no single provider exists that offers the end-to-end solutions and technology platform that address these challenges. Sensia will be uniquely positioned to connect disparate assets and reduce manual processes with secure, scalable solutions that are integrated into one technology platform.

“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,” Moret said.

“Sensia will create a leading technology provider that will further drive optimization of E&P oilfield assets,” said Paal Kibsgaard, Chairman and CEO, Schlumberger. “This joint venture is the next step in our vision to offer our customers smart, connected devices with rich diagnostic capabilities, coupled with measurement, automation and analytics that improve oilfield operations, facilitate business decisions and reduce total cost of ownership throughout the life of a field.”

Under the terms of the agreement, Sensia will operate as an independent entity, with Rockwell Automation owning 53% and Schlumberger owning 47% of the joint venture. As part of the transaction, Rockwell Automation will make a $250 million payment to Schlumberger at closing, which will be funded by cash on hand.

The management team will be led by Allan Rentcome, currently Director Global Technology - Systems and Solutions Business at Rockwell Automation, who will serve as Sensia Chief Executive Officer.

The partners expect Sensia will generate an annual revenue of $400 million, and will employ approximately 1,000 team members serving customers in more than 80 countries.