Rockwell Automation, Schlumberger partner on oil and gas automation
Rockwell Automation and Schlumberger have partnered to create a new joint venture, which they are calling the first fully integrated digital oilfield automation solutions provider.
The joint venture, called Sensia, is expected to begin serving customers in the summer of 2019, once the transaction has closed.
Schlumberger is a technology specialist for reservoir characterization, drilling, production and processing to the oil and gas industry.
The companies say that Sensia 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.
“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,” Blake Moret, Chairman and CEO, Rockwell Automation, told Manufacturing AUTOMATION. “Sensia will be uniquely positioned to connect disparate assets and reduce manual processes with secure, scalable solutions that are integrated into one technology platform.”
Paal Kibsgaard, chairman and CEO of Schlumberger, says, “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 per cent and Schlumberger owning 47 per cent 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 for the 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.