Schlumberger to buy Cameron for $14.8 billion

By The Bakken Magazine Staff | September 20, 2015

To form the first-ever pore-to-pipeline product and service provider in the oil and gas industry, Schlumberger Ltd will spend $14.8 billion. The globally recognized reservoir and well servicing entity with locations in the North Dakota communities of Williston and Minot, has started the acquisition process of Cameron, a surface technology provider that has expertise in wellhead servicing and flow management.

The acquisition comes less than a year after Paal Kibsgaard, Schlumberger’s chairman and CEO, called on the exploration and production industry to change its view on the industry in light of low oil prices and work to become more efficient in planning, drilling and completing unconventional wells. The new company—operating under the Schlumberger name—will be able to provide cost savings to customers through supply chain performance. None of the services offered by either entity overlap.

Schlumberger’s revenue base will increase by 20 percent through the purchase that is expected to be complete in 2016. “With oil prices now at lower levels, oilfield service companies that deliver innovative technology and greater integration while improving efficiency—which our customers increasingly demand—will outperform the market,” Kibsgaard said.

Schlumberger put a 37 percent premium on Cameron’s average price per share and a 56 percent premium to Cameron’s most recent closing stock price of $42.47 per share.