ABB, Schlumberger to form subsea JV

ABB Group and Schlumberger Ltd. signed a memorandum of understanding to form a joint venture intended to improve the economics of subsea oil and gas development. The memorandum includes the development of new technologies and services covering production from the reservoir to the delivery point, said a joint statement.


ABB Group and Schlumberger Ltd. signed a memorandum of understanding to form a joint venture intended to improve the economics of subsea oil and gas development. The memorandum includes the development of new technologies and services covering production from the reservoir to the delivery point, said a joint statement.

The worldwide joint venture, which the companies say will not require any material equity investment, will offer new technology for deepwater and offshore assets based on a risk-reward business model.

"Our objective is to provide the systems and the processes that will allow our customers to develop both deepwater and marginal offshore fields more economically," Euan Baird, chairman and CEO of Schlumberger, said Monday in announcing the agreement. "We believe that by working together, we can deliver innovative solutions that will significantly advance the state of the art in subsea field development.''

A definitive agreement between the parties is expected before year-end 2000.

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