Baker Hughes and Schlumberger form Western GECO

Baker Hughes announced the signing of a definitive agreement with Schlumberger that would create a seismic venture to be called Western GECO. The transaction is expected to be completed before the end of the year and is subject to regulatory approvals.
Under the terms of the definitive agreement, which was approved by the Baker Hughes and Schlumberger boards of directors, the two companies would create a venture that would own the seismic acquisition assets, data processing assets, and multi-client seismic libraries and other assets of Western Geophysical and GECO-Prakla. Upon formation of the venture, Baker Hughes would receive from Schlumberger approximately $ 500 mm in cash.
The transaction would also allow Baker Hughes to make certain working capital and asset reductions valued at approximately $ 100 mm. Baker Hughes and Schlumberger would respectively own 30 % and 70 % of the venture, which would operate under the name Western GECO.
Baker Hughes and Schlumberger have made filings under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and are responding to requests for additional information from the Department of Justice. In addition, Baker Hughes and Schlumberger intend to make additional filings with regulatory authorities in certain European and other countries.

Baker Hughes is a leading supplier of reservoir-centred products, services and systems to the world-wide oil and gas industry.