International oilfield services company, Schlumberger, has entered into an agreement with hydraulic fracturing services company, Liberty Oilfield, for the contribution of Schlumberger’s onshore hydraulic fracturing business in the United States and Canada OneStim in return for a 37% equity interest in the combined company, according to a press release. 

The strategic deal will include the provision of Schlumberger’s pressure pumping, pump-down perforating, and Permian frac sand businesses to Liberty. Meanwhile, the combined company will deliver best-in-class completion services for the sustainable development of unconventional resource plays in the United States and Canada land markets.

Schlumberger CEO Olivier Le Peuch said, “I’m very proud we have reached this agreement to combine our OneStim business with a leader in North American hydraulic fracturing who shares a like-minded focus on customers, technology, people and our safety culture. This partnership provides an ideal home for our OneStim business and its employees and is in line with our capital stewardship strategy while benefiting from future market upside through our equity stake.” 

The deal means that the combined company will become one of the largest pressure pumping companies in North America with a 2019 combined Pro-forma revenue of $5.2 billion and substantial earnings power. 

The transaction is expected to finalize in Q4 2020.