New joint venture entity will combine Rockwell Automation’s
integrated control and information solutions with Schlumberger’s
oil and gas expertise to help customers maximize the value of their
investments.
Rockwell Automation (NYSE: ROK), the world’s largest company
dedicated to industrial automation and information, and
Schlumberger (NYSE: SLB), the world's leading provider of
technology for reservoir characterization, drilling, production,
and processing to the oil and gas industry, announced today that
they have entered into an agreement to create a new joint venture,
Sensia, the first fully integrated digital oilfield automation
solutions provider.
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The transaction is expected to close, and the joint venture is
expected to begin serving customers, in the summer of 2019, subject
to regulatory approvals and other customary conditions.
The Sensia joint venture will be the first fully integrated
provider of measurement solutions, domain expertise, and automation
to the oil and gas industry. It will offer scalable, cloud and
edge-enabled process automation, including information and process
safety solutions. From intelligent systems to fully engineered
life-cycle management automation solutions, the joint venture will
help customers drive efficiency gains through measurement and data
driven intelligent automation.
“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,” said Moret.
“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. Sensia is expected to
generate annual revenue of $400 million, and will employ
approximately 1,000 team members serving customers in more than 80
countries, with global headquarters in Houston, Texas. The
management team will be led by Allan Rentcome, who will serve as
Chief Executive Officer. He is currently Director Global Technology
- Systems and Solutions Business at Rockwell Automation.
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. Following this investment, Rockwell Automation will
maintain its strong financial flexibility and continue to support
its capital allocation priorities, including organic growth and
acquisitions, dividends, and share repurchases, and Rockwell
Automation reaffirms its $1 billion share repurchase target for
fiscal 2019.
Rockwell Automation will discuss the joint venture during its
presentations at the Citigroup Global Industrials Conference on
Wednesday, February 20, 2019 and the Barclays Industrial Select
Conference on Thursday, February 21, 2019. Both presentations will
be webcast, and available on the Rockwell Automation website at
www.rockwellautomation.com.
About Rockwell
Automation
Rockwell Automation (NYSE: ROK), the world’s largest company
dedicated to industrial automation and information, makes its
customers more productive and the world more sustainable.
Headquartered in Milwaukee, Wis., Rockwell Automation employs
approximately 23,000 people serving customers in more than 80
countries.
About Schlumberger
Schlumberger (NYSE: SLB) is the world's leading provider of
technology for reservoir characterization, drilling, production,
and processing to the oil and gas industry. Working in more than 85
countries and employing approximately 100,000 people who represent
over 140 nationalities, Schlumberger supplies the industry's most
comprehensive range of products and services, from exploration
through production, and integrated pore-to-pipeline solutions that
optimize hydrocarbon recovery to deliver reservoir performance.
Schlumberger Limited has principal offices in Paris, Houston,
London and The Hague, and reported revenues of $32.82 billion in
2018.
Forward-Looking Statement: This press release contains
“forward-looking statements” within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. The opinions,
forecasts and projections regarding the expected benefits of the
proposed joint venture; the expected timing of the completion of
the transaction; the parties’ ability to complete the transaction
considering the various regulatory approvals and other closing
conditions; future opportunities for the joint venture and its
products and services; and any other statements regarding the
parties’ or the joint venture’s future expectations, beliefs,
plans, objectives, financial conditions, assumptions or future
events or performance, are forward-looking statements within the
meaning of the federal securities laws. These statements are
subject to, among other things, satisfaction of the closing
conditions to the proposed transaction, the risk that the proposed
transaction does not occur, negative effects from the pendency of
the proposed transaction, the ability to realize expected benefits
from the proposed transaction, the timing to consummate the
proposed transaction, and other risk factors contained in Rockwell
Automation’s and Schlumberger’s most recent Forms 10-K as well as
each company’s other filings with the SEC available at the SEC’s
Internet site (http://www.sec.gov). Actual results may differ
materially from those expected, estimated or projected.
Forward-looking statements speak only as of the date they are made,
and the parties undertake no obligation to publicly update or
revise any of them in light of new information, future events or
otherwise.
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Investor Relations Contacts:Simon
Farrant, Vice President of Investor Relations, SchlumbergerJoy V.
Domingo, Manager of Investor Relations, SchlumbergerTel: +1 (713)
375-3535investor-relations@slb.com
Steve Etzel, Investor Relations, Rockwell Automation,
414-382-8510, swetzel@ra.rockwell.com
Media Contacts:Joao Felix,
Schlumberger, Director of Corporate CommunicationTel: +1 (713)
375-3535communication@slb.com
Ike Umunnah, Rockwell Automation, Director, Global Public
Affairs, 414-382-5679, ITUmunna@ra.rockwell.com
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