SLB Schlumberger Ltd

   By Stephen Nakrosis 
 

Rockwell Automation Inc. (ROK) and Schlumberger Ltd. (SLB) on Tuesday announced the creation of a joint venture, Sensia, an integrated provider of measurement solutions, domain expertise, and automation to the oil and gas industry.

Sensia will be an independent entity, with Rockwell Automation owning 53% and Schlumberger owning 47% of the JV. The new company is expected to generate annual revenue of $400 million, and will employ about 1,000 people to serve customers in more than 80 countries.

The JV will have its global headquarters in Houston, Texas.

Allan Rentcome, the current director Global Technology -- Systems and Solutions Business at Rockwell Automation, will serve as Sensia's chief executive.

The new JV is expected to begin serving customers this summer.

Rockwell Automation said under the terms of the deal it will make a $250 million payment to Schlumberger at closing, which will be funded by cash on hand.

"As oil and gas producers strive to improve productivity, we will bring the value of the connected enterprise to life for them. Sensia will provide complete lifecycle and process automation solutions from well to terminal, including industry-leading oilfield technology and expertise," said Blake Moret, Rockwell Automation chairman and chief executive.

Paal Kibsgaard, chairman and chief executive of Schlumberger, said "This joint venture is the next step in our vision to offer our customers smart, connected devices with rich diagnostic capabilities, coupled with measurement, automation and analytics that improve oilfield operations, facilitate business decisions and reduce total cost of ownership throughout the life of a field."

Write to Stephen Nakrosis at stephen.nakrosis@wsj.com

(END) Dow Jones Newswires

February 19, 2019 18:16 ET (23:16 GMT)

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