Halliburton announced that one of its business units, Halliburton Energy Services (HES), and Shell Technology Ventures (STV) have restructured two joint venture companies - Enventure Global Technologies LLC (EGT) and WellDynamics BV (WD)-- in an effort to more closely align the ventures with near-term priorities in the core businesses of the venture owners. Prior to the restructuring, both ventures were owned 50/50 by HES and STV. The proposed transactions will require no cash, except for the cash necessary to adjust and re-balance the current and projected working capital positions.
Enventure Global Technologies is the industry leader in solid expandable products and services. STV will acquire from HES an additional 33.5 percent of Enventure Global Technologies. However, existing HES agreements and licenses with Enventure for its Poroflex™ expandable sand screens and a distribution agreement for its Versaflex™ expandable liner hangers will be enhanced and extended. EGT will retain its independent stance and will continue to run as a separate commercial organization.
WellDynamics is the industry leader in intelligent well products and services. The company's current backlog of orders is in excess of $40 million. HES will acquire an additional one percent of WellDynamics from STV, giving HES 51 percent ownership and control of day to day operations, which will allow for more natural opportunities in HES to leverage its existing complementary businesses, reduce costs, and ensure global availability. WellDynamics will continue to be an independent service company offering its product range to all operators.
"The restructuring allows us to make the most of each venture's strengths and drive the technology to its full potential at a maximum pace," said John Gibson, president and CEO, Halliburton's Energy Services Group. "Both Enventure and WellDynamics have grown strongly over recent years with 50 percent plus growth rates."
HES and Shell continue numerous other co-operations on technology innovation and market introduction through various forms of venturing, including through several joint investments.
Halliburton Energy Services provides products, services, and integrated solutions for oil and gas exploration, development, and production. Capabilities range from initial evaluation of producing formations
, and well maintenance - for a single well or an entire field. With more than 300 service centers in more than 100 countries, Halliburton possesses the global perspective that is increasingly important for energy exploration and production.