Schlumberger has executed a joint venture agreement with High Arctic Energy Services Inc. for the purpose of providing underbalanced drilling services and managed pressure drilling services to the worldwide upstream oil and gas industry. The Joint Venture provides a global platform to rapidly develop the UBD and MPD businesses. Initially, the Joint Venture will focus on providing UBD and MPD services for projects managed by Schlumberger Integrated Project Management ("IPM").

The Joint Venture will be owned 51% by High Arctic and 49% by Schlumberger. As part of the initial formation of the Joint Venture, High Arctic will sell its existing UBD and MPD equipment and the technology associated with its existing UBD and MPD businesses, including intellectual property rights, to the Joint Venture. The Joint Venture start-up and ongoing capital needs will be proportionately funded by High Arctic and Schlumberger. The Joint Venture will be known as Optimal Pressure Drilling Services.

Commenting on the agreement, Mr. Miguel Galuccio, president Schlumberger IPM said, "Combining the fast-growing market recognition and penetration of Schlumberger IPM with High Arctic's technical expertise will provide our customers with a complete integrated solution in the UBD market which will further assist in mainstreaming MPD in its relationship to performance drilling." Mr. Jed Wood, president and CEO of High Arctic added, "Being selected by Schlumberger as a worldwide underbalanced partner is an important endorsement of High Arctic leadership in the UBD market."

High Arctic spends significant resources on research and development to create new technology for its distinct product lines. High Arctic’s success in underbalanced drilling is underpinned by this commitment which, together with High Arctic's technical expertise, has led to a wide range of innovative drilling and completions products.

Tags: High Arctic Energy Services Inc, Schlumberger