SLB has completed its acquisition of ChampionX Corporation, expanding its portfolio in the production and reservoir recovery space.
In its announcement on July 16, SLB said ChampionX shareholders received 0.735 shares of SLB common stock for each share they owned. As a result, former ChampionX shareholders now own about 9% of SLB’s outstanding common shares.
“This acquisition comes at a pivotal time in the industry as our customers increasingly prioritize advancements in production to maximize recovery of oil and gas,” SLB’s Chief Executive Officer, Olivier Le Peuch said in a statement from the company.
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The deal brings ChampionX’s production chemicals, artificial lift, digital, and emissions technologies into SLB’s offerings. SLB said the combination enhances performance and extends asset life across the production lifecycle.
The acquisition combines ChampionX’s customer relationships in North America with SLB’s international presence. SLB said this will generate value for customers and stakeholders globally.
“This move expands SLB’s presence in this important, less cyclical, and growing market that aligns closely with our returns-focused, capital-light core growth strategy,” Le Peuch said. “It extends our capability to provide integrated production solutions and provides another platform for accelerating digital adoption, optimizing production and reducing total cost of ownership for our customers.”
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SLB expects to achieve about US$400 million in annual pretax synergies within three years through revenue growth and cost savings. The company remains on track to return $4 billion to shareholders in 2025.
SLB asserts its position as the foremost technology provider in reservoir characterization, drilling, production, and processing for the global oil and gas sector. As a prominent service provider, SLB extends substantial technical support to Exxon, particularly in the Stabroek Block, facilitating the proving of hydrocarbon reserves.
In 2017, Schlumberger (the former name of SLB) made a substantial investment, establishing a lasting presence in Guyana with the inauguration of its US$75 million oil services facility base in Houston.
