Schlumberger Expands Carbon Capture Reach Through Aker ACC Deal: Details

Schlumberger N.V. SLB said it has entered into a deal with Aker Carbon Capture (ACC) to merge its carbon capture division, aiming to advance large-scale industrial decarbonization.

Following the transaction, Schlumberger will own 80% of the combined business, and ACC will own 20%. Schlumberger will pay NOK 4.12 billion ($380.86 million) to acquire a majority stake at ACC. 

Schlumberger said in a press release that it may also make additional payments of up to NOK 1.36 billion over the next three years based on the performance of the business.

The combination will leverage ACC’s commercial carbon capture product offering and SLB’s new technology developments and industrialization capability. 

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The transaction is subject to regulatory approvals and is expected to close by the end of the second quarter of 2024.

While reporting fourth-quarter results, Schlumberger said that the company’s capital investment in 2024 is expected to be ~$2.6 billion, similar to the full year 2023.

Olivier Le Peuch, Chief Executive Officer, said in a release dated January 30, “Our forecast for significant growth for 2024 in the Kingdom remains intact. Looking ahead, the combination of our revenue mix in the Kingdom, which is weighted toward onshore and the expanding gas market, and our unique market position in other countries in the Middle East will continue to support the multi-year growth cycle in the region.”

Additionally, the company plans to increase share repurchases in 2024, visibly enhancing returns to shareholders for the full year.

“As we shared during our most recent earnings release, global energy demand continues to increase, and international production is expected to play a key role in meeting supply through the end of this decade. Given this, we are confident in the strength and longevity of this cycle through 2024 and beyond,” Peuch added.

Price Action: SLB shares are trading lower by 0.46% to $54.65 premarket on the last check Thursday.

Photo by Rab Lawrence via Flickr