Denver-based Liberty Oilfield Services Inc. has completed its takeover of Schlumberger Ltd.’s OneStim, the massive U.S. and Canada onshore hydraulic fracturing business, in exchange for 37% equity.
The transaction, completed on the final day of 2020, moved Liberty into the top tier of onshore completions experts. OneStim provides expanded opportunities in pressure pumping, pump down perforating and Permian Basin fracture sand.
With the purchase, Liberty controls an estimated 2.5 million high hp (hhp) for completions, with 1.25 million hhp available for service and 1 million hhp in maintenance support. Liberty also plans to permanently retire 1 million hhp from the market.
Liberty, said CEO Chris Wright, “has laid the foundation for a new era of technology and sustainability in the oil and gas industry. We are driven to advance global energy access by bringing hydrocarbons to the surface in a clean, safe and efficient way.”
Even with Schlumberger owning more than one-third of the company, Liberty continues to be led by Wright and his management team.
“Together, the talent and technology at Liberty enable us to execute on this responsibility, and we are excited to welcome our new employees and customers to the Liberty family,” Wright said. “Our expanded technology portfolio, dedicated team of professionals and breadth of operations form the foundation for us to achieve greater innovation and efficiency to deliver the best service to our customers and returns to our shareholders.”
Schlumberger CEO Olivier Le Peuch said the transaction positioned the oilfield services giant for “the strong recovery already underway in North American shale activity.
“Our experience with Liberty over the past few months has confirmed our belief that this is the right combination for the future. We are proud to participate in the North America market with an organization that combines scale, technology, customer portfolio and talent unmatched in the industry. We look forward to realizing the synergies and to leverage our alliance agreement for further technology collaboration with Liberty.”
Concurrent with the closing, Liberty added two Schlumberger representatives to its board, Simon Ayat and James R. McDonald. Ayat is a senior strategic adviser and former CFO for Schlumberger, while McDonald is president of the Americas Land unit.
“We are at an exciting time in our journey as a company, and their considerable global experience brings a unique perspective to Liberty,” Wright said of the new board members. “Our technology alliance agreement further complements our established technology and engineering services that help solve our customers’ challenges, and together, we look forward to enabling the next generation development of resources.”
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