German Bauer Group and Schlumberger to partner on deep drilling business
Bauer Maschinen GmbH and Schlumberger announce partnership on the development and construction of larger deep drilling rigs for the oil, gas and geothermal sectors.
In a release, Germany-based BAUER Maschinen GmbH, an affiliated company of listed BAUER AG (ISIN: DE005168108) announces, that it “has signed a non-binding letter of intent (LOI) with Schlumberger, the world’s leading supplier of technology, integrated project management and information solutions for customers in the oil and gas industry. In this LOI, negotiations towards a joint venture, which outlines a common approach for the development and construction of larger deep drilling rigs for the oil, gas and geothermal sectors, have been agreed.
It is expected that the subsidiaries of BAUER Maschinen GmbH that operate in this segment shall be contributed to the joint venture. As part of the joint venture, rigs shall be developed and specifically built for Schlumberger. In addition, other rig types including associated equipment shall be offered to international rig drilling companies.
Both companies anticipate that the planned joint venture can soon achieve revenues of more than one hundred million euros and open up great opportunities for the future.
Definitive documentation and the closing of the transaction is planned to be finalized during the fourth quarter of 2015.”
Over many years Bauer Group has been working on deep drilling technology and planned to enter also the “deep” geothermal market.
Source: Company release