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Rockwell and Schlumberger to create oilfield automation JV Sensia

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Staff Writer | Thursday February 21, 2019 5:30AM ET
Rockwell Automation
America   Rockwell Automation will make a $250 million payment to Schlumberger

Rockwell Automation and Schlumberger announced that they have entered into an agreement to create a new joint venture, Sensia, the first fully integrated digital oilfield automation solutions provider.


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The transaction is expected to close, and the joint venture is expected to begin serving customers, in the summer of 2019, subject to regulatory approvals and other customary conditions.

The Sensia joint venture will be the first fully integrated provider of measurement solutions, domain expertise, and automation to the oil and gas industry.

It will offer scalable, cloud and edge-enabled process automation, including information and process safety solutions.

From intelligent systems to fully engineered life-cycle management automation solutions, the joint venture will help customers drive efficiency gains through measurement and data driven intelligent automation.

Under the terms of the agreement, Sensia will operate as an independent entity, with Rockwell Automation owning 53% and Schlumberger owning 47% of the joint venture.

Sensia is expected to generate annual revenue of $400 million, and will employ approximately 1,000 team members serving customers in more than 80 countries, with global headquarters in Houston, Texas.

The management team will be led by Allan Rentcome, who will serve as Chief Executive Officer.

He is currently Director Global Technology - Systems and Solutions Business at Rockwell Automation.

As part of the transaction, Rockwell Automation will make a $250 million payment to Schlumberger at closing, which will be funded by cash on hand.

Following this investment, Rockwell Automation will maintain its strong financial flexibility and continue to support its capital allocation priorities, including organic growth and acquisitions, dividends, and share repurchases, and Rockwell Automation reaffirms its $1 billion share repurchase target for fiscal 2019.

 

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