Rockwell Automation Inc. and Schlumberger N.V. plan to create a joint venture billed as the first “fully integrated digital oilfield automation solutions provider,” the companies said Tuesday.
Named Sensia, the joint venture will be headquartered in Houston and will have around 1,000 employees in more than 80 countries. Allan Rentcome, currently director of global technology for the systems and solutions business at Rockwell, will lead the new organization as chief executive officer.
Schlumberger is also based in Houston and had $32.82 billion in revenue last year. The company provides technology, products and services from oil exploration through production. Paal Kibsgaard, chairman and CEO of Schulumberger, said the joint venture would help customers optimize oilfield asssets.
“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 of 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.
Sensia will operate as an independent entity that is expected to generate $400 million in revenue annually. Rockwell will own 53 percent of the business and Schlumberger will own 47 percent.
Rockwell will pay Schlumberger $250 million from cash on hand when the deal closes, likely in the summer. The Milwaukee-based company says it will still have financial flexibility after making the payment and is still targeting $1 billion in share repurchases this year.