SCHLUMBERGER EXITS WesternGeco SEISMIC ACQUISITION BUSINESS

January 22, 2018

Schlumberger Chairman and CEO Paal Kibsgaard advised that the company has taken the decision to exit the marine and land seismic acquisition business.
“With the significant changes seen in customer priorities and buying habits in recent years, we have also continued to evaluate the present and future return prospects for all of our product lines, as we look to maximize all aspects of the Company’s long-term financial performance. Based on this in-depth analysis, the only product line that does not meet our return expectations going forward, even factoring in an eventual market recovery, is our seismic acquisition business. We have therefore taken the difficult decision to exit the marine and land seismic acquisition market, and instead turn our WesternGeco product line into an asset-light business, built on our leading position within multiclient, data processing, and geophysical interpretation services.
WesternGeco was formed by the merger in 2000 of two of the world’s largest seismic contractors, Western Geophysical and Geco-Prakla. Schlumberger, owners of Geco-Prakla paid cash to Baker Hughes, which then owned Western, for a 70% stake in a joint venture of the combined companies. In May 2006, Schlumberger bought out Baker Hughes’ 30% stake for a reported $2.4 billion, making WesternGeco one of its subsidiaries. (Source: Schlumberger – Image: WG Amundsen/Ulstein)