Oil services giant Schlumberger entered into an agreement to acquire the coiled tubing drilling and coiled tubing units from Xtreme Drilling and Coil Services Corp., a Calgary-based provider of international land drilling and coiled tubing drilling services.
Xtreme currently owns a fleet of 11 coiled tubing units located in Saudi Arabia and the US. The transaction is subject to customary closing conditions and is expected to close in Q3.
The Schlumberger technology integration approach is evolving engineering of the drilling system from a simple combination of discrete services to optimized systems that are customized through extensive design and modeling capabilities for specific customer requirements. The addition of Xtreme’s coiled tubing technology to the Schlumberger portfolio will be a key enabler for further advances in drilling efficiency, especially in challenging land-based environments.
“With the addition of Xtreme’s coiled tubing assets, we continue our pursuit of advancing overall drilling and well intervention efficiency through technology integration to help our customers improve production at a lower cost per barrel,” said Sherif Foda, president, Production Group, Schlumberger. “The combination of our existing technology portfolio with Xtreme’s proprietary technology will result in a step change in operational performance.”
Tom Wood, CEO, Xtreme, added, “The purchase of Xtreme's industry leading, advanced AC-electric coiled tubing technology validates our long-term vision to develop the most automated and advanced coiled tubing system in the world. This complements Schlumberger’s focus on operational efficiency and market expansion through automation and integration.”
Established in 2005, Xtreme operates in two segments, Drilling Services (XDR) and Coil Services (XSR). It designs, builds, owns and operates a fleet of high specification drilling rigs and coiled tubing well service units featuring proprietary technology, including AC high-capacity coil injectors, deep re-entry drilling capability, modular transportation systems, and continuous integration of in-house advances in methodologies.
Last week, Schlumberger laid off 2000 employees as the company reported one of its steepest revenue declines since the downturn began, citing global activity decline and disruption that has reached unprecedented levels.
The company also completed its US$14.8 billion merger with rival Cameron International, less than a year after the deal was proposed.
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