BP, Schlumberger & Rosneft Team Up To Develop Technology

BP plc (LON:BP) (NYSE:BP) , Schlumberger Limited (NYSE:SLB) and Rosneft have joined forces for seismic research and development. The agreement was inked at the Eastern Economic Forum (EEF) in Vladivostok, Russia.

Per the terms of the agreement, Rosneft will join as an equal partner in BP’s seismic business with Schlumberger, WesternGeco, which is currently underway. This business relates to development of state-of-the-art cableless onshore seismic acquisition technology. The technology targets to transform the design and acquisition of 2D and 3D seismic surveys. As a result, this will improve subsurface imaging and efficiency of exploration, appraisal and field development. The ability to provide faster and improved seismic data acquisition at cheaper rates than conventional seismic surveys will also bring environmental and safety advantages in areas that are difficult to access as well as extreme climates.

The project is estimated to require an initial two-year period to complete the development of a seismic acquisition system. BP and Rosneft will have privileged access to this technology for an initial period. Thereafter, Schlumberger will have the exclusive rights to market the system.

The partnership of the three oil giants will bring together their expertise and specialized knowledge in the field, thereby supporting the development of innovative upstream technologies. Rosneft’s involvement will aid in creating solutions for specific Russian settings. As the research project has an international status, the product to be created is likely to have a significant potential in the global markets.

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BP is one of the world's major energy companies that provides its customers with fuel for transportation, energy for heat and light, retail services and petrochemical products.

Schlumberger is a leading oilfield services company, providing technology, project management and information services to the global oil and gas industry.

Both BP and Schlumberger currently carry a Zacks Rank #3 (Hold). Some better-ranked players from the energy sector are NGL Energy Partners LP (NYSE:NGL) and Enviva Partners L.P. (NYSE:EVA) . Both these stocks sport a Zacks Rank #1 (Strong Buy).

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