8-KOther Events

SLB LIMITED/NV 8-K Report (Dec 9, 2003)

Filed December 9, 2003For Securities:SLB

Summary

This 8-K filing from Schlumberger Limited (SLB) on December 9, 2003, announces a significant strategic move: the agreement to acquire PetroAlliance Services Company Limited. This acquisition will occur in three stages, with Schlumberger initially acquiring a 26% stake, followed by additional tranches in 2005. The transaction underscores Schlumberger's commitment to expanding its service offerings and market presence within the oilfield services sector. The initial acquisition of 26% of PetroAlliance Services is expected in the first quarter of 2004 for approximately $35 million, structured as one-third cash and two-thirds stock. The total acquisition price is contingent on a performance-based formula, indicating a focus on future operational success and integration. Investors should note this strategic acquisition as a key development in SLB's growth strategy.

Key Highlights

  • 1Schlumberger has entered into an agreement to acquire PetroAlliance Services Company Limited.
  • 2The acquisition will be completed in three staged tranches.
  • 3An initial 26% interest will be acquired in Q1 2004, with further 25% stakes to be acquired in Q2 2005 and one year thereafter.
  • 4The initial acquisition of 26% minority interest will cost approximately $35 million.
  • 5The initial payment will be composed of one-third cash and two-thirds Schlumberger stock.
  • 6The total acquisition price is subject to a performance-based formula.
  • 7The transaction is subject to performance standards and other customary conditions for each stage.

Frequently Asked Questions

This 8-K filing announces Schlumberger's agreement to acquire PetroAlliance Services Company Limited, detailing the staged acquisition plan and initial financial terms.

The acquisition will be completed in three stages. Schlumberger will first acquire 26% of the company, followed by an additional 25% in the second quarter of 2005, and the remaining interest one year later. Each stage is contingent on performance standards and other customary conditions.

The initial acquisition of the 26% minority interest is expected to cost approximately $35 million. This amount will be paid one-third in cash and two-thirds in Schlumberger stock.

No, the total acquisition price will be determined by a performance-based formula. This means the final cost will depend on the future performance of PetroAlliance Services.