Germany: Schlumberger and Bauer to Cooperate on Constructing Deep Drilling Rigs

Bauer Group negotiates partnership in the deep drilling business (News Release)

On September 9, 2015, BAUER Maschinen GmbH, an affiliated company of BAUER AG 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.

Schlumberger will be exhibiting at the GRC Annual Meeting & GEA Geothermal Energy Expo, September 20-23 at the Peppermill Resort Spa Casino, Reno, Nevada, USA.