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. Last Updated: 07/27/2016

Seismic Venture Plan

HOUSTON -- Schlumberger Ltd., the world's No. 2 oilfield services company, and Baker Hughes Inc., the world's No. 3 oilfield services player, said Wednesday they have signed a memorandum of understanding to create a seismic venture called Western GECO.

Baker Hughes' Western Geophysical division and Schlumberger's Geco-Prakla unit would be combined in the venture, which would then own the seismic acquisition assets, data processing assets, seismic libraries and other assets of the two businesses.

Baker Hughes would own 30 percent of Western GECO and Schlumberger would own a 70 percent stake. Western GECO would have had pro forma 1999 revenue of about $1.5 billion, according to the companies.

In addition, Schlumberger, which has dual headquarters in Paris and New York, would pay Baker Hughes about $500 million in cash under the deal. The deal is expected to close before the year's end and is still subject to a definitive agreement as well as regulatory and board approvals.