Oilfield services giant Schlumberger has sold off a clutch of non-core drilling assets to a private equity-backed player in a deal worth around $400 million, writes Eoin O'Cinneide.

Wellbore Integrity Services (WIS), an affiliate of New York-based Rhone Capital, is acquiring Drilco, Thomas Tools and Fishing & Remedial Services. WIS will also acquire part of a manufacturing facility in Houston.

Both parties expect the deal to close by the end of the year.

Following the acquisitions, WIS will have close to 1100 employees in 25 countries.

Kristi Vilay, president, bits and drilling tools at Schlumberger, said: "This divestiture will enable Schlumberger to focus on its core drilling strategy, including the development of automation technologies.”

WIS chief executive David MacNeil added: “Our customers will benefit from our expansion as an independent service and product supplier with a strong global footprint.”

Analysts at investment bank Cowen & Company said Schlumberger could next divest some Schlumberger Production Management assets “as a way to demonstrate to investors the value creation Schlumberger expects from the business model”.

“Our sense is that a sale of the Argentina asset is a possibility in 2019 and a sale of the Palliser Canada asset could be a 2020 event,” they added.

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Schlumberger in non-core assets sale deal with Wellbore