Following the announcement of acquisition of Smith International Inc (SII), Schlumberger Limited (SLB) is now acquiring privately held Geoservices for $1.07 billion from Astorg Partners. Geoservices is a French oilfield services company that specializes in mud logging and production surveillance operations. Astorg Partners is a French independent private equity firm.
 
Mud logging technology is used to get additional information through logging analysis of the drilling fluids and cuttings. Exploration and production (E&P) companies use this additional information to improve the understanding of the rock and fluid content of the borehole as well as to identify drilling hazards.
 
Conjugation of the mud logging technology with Schlumberger’s real-time downhole formation sampling measurements helps customers increase the ability to design and modify the drilling system.
 
We think that this a prudent step taken by Schlumberger as we believe that this is the right time to optimize drilling efficiency as the oil industry moves to drilling in more challenging reservoir conditions.
 
A number of significant acquisitions recently have accelerated Schlumberger’s growth momentum. Earlier this month, Schlumberger acquired Nexus Geosciences Inc, a Houston-based provider of integrated seismic software and services for rapid imaging, modeling and interpretation.
 
Schlumberger’s solid technology portfolio and worldwide infrastructure implies that the company is strongly positioned to capture growth opportunities as its customers begin to increase their investment.
 
Schlumberger shares fell 1.3% to $62.21 in Wednesday trading.
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Read the full analyst report on “SII”
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