Schlumberger absorbs CBM player, Saxon Energy Services

Oilfield services giant Schlumberger Ltd has taken full ownership of SES Holdings Ltd, parent firm of Saxon Energy Services. The company, meanwhile, continues to expand its coalbed methane (CBM) operations worldwide.

In 2008, Schulmberger partnered with Connecticut-based equity firm, First Reserve in 2008 to buy publicly traded  Saxon for US$ 592 million and take it private. The companies each took 49 per cent stakes, with the rest held by Saxon management.

At the time, then-chief executive Dale Tremblay said he had been given a mandate to triple Saxon’s business from US$ 242 million/year in evenue with 50 rigs.

“Since our initial investment in 2008, Saxon’s land drilling rigs have provided Schlumberger with an excellent integration platform, allowing us to further optimize the drilling process in major projects around the world,” said Paal Kibsgaard, CEO of Schlumberger

“The conversion of our minority share in Saxon into full ownership is in line with our integrated well construction and production management business growth plans,” Kibsgaard added.

Schlumberger said Saxon is still Calgary based and now operates a fleet of 87 rigs (70 drilling and 17 workover) in 10 countries, as well as providing support services to an additional 35 rigs worldwide. It has 3,700 employees, it said.

Saxon Energy Services

Saxon Energy Services is a major player in the CBM drilling industry. The company has recently targeted CBM fields in Australia, and looked to increase expansion in the Asia-Pacific region.

Last year, the company signed a key contract with Hilcorop in Alaska, which saw the redeployment of two drilling rigs from Alberta, Canada to support a two-year contract with Hilcorp Alaska. 

Edited from various sources by Sam Dodson

Published on 26/06/2014

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