Switzerland-based Weatherford International PLC said Dec. 17 that it signed a definitive agreement to sell its surface data logging business to London-based oilfield services company Excellence Logging for $50 million in cash.
As part of the agreement, Weatherford will sell all of its surface data logging equipment, technology and associated contracts and will transfer the related personnel to Excellence Logging. Weatherford will exit the surface data logging business, but plans to continue to maintain a close and collaborative relationship with Excellence Logging to provide bundled and integrated services to its customers including surface data logging, the company said in a news release.
The transaction is expected to close in the first half of 2019, subject to customer closing conditions. The purchase price is subject to customary post-closing working capital adjustments. Upon closing, Weatherford will use the net proceeds to reduce its debt.
This transaction is one in a series of planned divestitures that will help deleverage Weatherford's capital structure. During the third quarter, Weatherford announced the sale of its international land rigs business for $287.5 million, of which it has received $215.5 million in cash proceeds to date.
During the fourth quarter, the company announced an agreement to sell its laboratory services business for $205 million in cash.