Schlumberger Ltd. (NYSE: SLB) said June 19 it formed a joint venture (JV) with HEAL Systems, formerly Production Plus Energy Services Inc., to develop the company's production optimization technology and business.

Schlumberger Forms JV To Develop Production Optimization System

The HEAL System complements existing artificial lift systems, has no moving parts and benefits a horizontal well during any phase of its life cycle.

The system has consistently achieved productivity increases of more than 30% to 100% in typical horizontal wells across Western Canada and the U.S. Overall, the technology has reduced operating costs in nearly 200 wells in more than 35 formations across North America, according to the company press release.

The JV, effective May 31, will autonomously develop its business in the U.S. and Canada, whereas outside of those defined regions, Schlumberger will be the sole distributor of the HEAL System technology.

“Producers are looking for proven solutions to reliably produce their wells as efficiently as possible over the entire production life cycle. Our mission with the HEAL System is to deliver those solutions,” Jeff Saponja, CEO of Heal Systems, said in a statement.

Production Plus contributed its HEAL System business to the JV in exchange for cash consideration and future contingent payments. At the closing of the transaction, Production Plus will hold a 50.1% interest in the JV entities and Schlumberger will hold 49.9%.