Offshore staff

HOUSTON -- National Oilwell Varco (NOV) and Schlumberger have signed a definitive agreement to create a joint venture to develop wired drill string telemetry systems.

The agreement will enable the companies to accelerate delivery of intelligent drilling solutions to customers through the expanded use of the IntelliServ Network, while opening a range of new technological opportunities for customers. Closing, which is subject to regulatory approval, is anticipated to occur in late 4Q 2008 or early 2009.

Under the terms of the agreement, NOV will assume operational control of the joint venture through a 55% stake, while Schlumberger will purchase a 45% stake and add technology expertise and measurement know-how necessary to help promote the technology.

Schlumberger will also pursue the development of drilling related systems that are enabled by the IntelliServ Network. The JV will make no changes to the open access architecture of the IntelliServ Network platform, in order to promote this as an industry standard for all providers of bottom-hole assemblies who wish to deploy high data-rate downhole tools at the bottom of the drill string.

11/19/2008