Schlumberger to acquire oilfield services firm Géoservices for $1.07-billion

Schlumberger, the world's largest oilfield services company yesterday proposed to acquire privately owned French oilfield services company Géoservices for $1.07 billion including debt, making it the oil major's second acquisition proposal this year so far.

Last month, Schlumberger with 2009 revenues of $22.7 billion, proposed the acquisition of Houston, Texas-based Smith International, one of the largest global providers of supplies products to gas and oil production and exploration companies for $12.4 billion. (See: Schlumberger in advanced talks to acquire Smith International: report)

Paris-based Géoservices, founded in 1958, employs approximately 5,000 people across 50 countries.

The company with $491 million turnover in 2009, is the leading mud-logging company, and has invested heavily in the development of new technology for exploration and appraisal well activities, particularly in the emerging deepwater market.

As the oil industry recovers from the after-shocks of the global recession, there has been heightened activity in oil and oil services companies consolidating through acquisitions.

Géoservices mud-logging services were the key attraction to the Houston, Texas-based Schlumberger. Mud logging extracts information from the drilling mud and drilling process while drilling and provides data for both formation evaluation and drilling efficiency.