Tuesday, June 25, 2013

Cameron and Schlumberger JV Gets Green Light

Oil and gas industry services providers Cameron International (NYSE: CAM  ) and Schlumberger (NYSE: SLB  ) announced today that their OneSubsea joint venture had received all required regulatory approvals and that they'll close on the JV on June 30.

OneSubsea will focus on manufacturing and developing products, systems, and services for the subsea oil and gas market and will be split 60-40, respectively, between the two companies, with Cameron managing its operations.

Cameron Chairman, President, and CEO Jack B. Moore said: "This is an exciting time for Cameron as we now have the opportunity to further expand our subsea business through OneSubsea. Our near-term focus is on the execution of plans that have been laid out in recent months while continuing to deliver the highest levels of quality and safety in our product and service offerings."

Under the terms of the venture as they were originally announced last November, Cameron will contribute its existing subsea division and receive $600 million from Schlumberger. Schlumberger will contribute its Framo, surveillance, flow assurance, and power and controls businesses.

For financial reporting purposes, Cameron will consolidate the joint venture while also reflecting minority interest in its financial statements for Schlumberger's interest.

No comments:

Post a Comment