OSLO, Feb 23 (Reuters) - Schlumberger, the world's largest oilfield services firm, and smaller peer Subsea 7 said on Friday they were entering exclusive talks to form a joint venture to deliver subsea installations and services for oilfields.
In recent months oil firms have returned to profits due to higher oil prices and the benefits of deep cost cuts they made during the downturn. But their suppliers are still feeling the squeeze and trying to cope with low profitability.
Since 2015 Schlumberger and Subsea 7 have collaborated for some of their work in designing, building and laying oil and gas production installations that lay on the seabed.
The two firms are now aiming to build a 50-50 joint venture that would deliver subsea installations, maintenance and repair services.
"The proposed joint venture will give us the opportunity to capitalize on the synergies already established and significantly improve subsea economics over the lifetime of the field," Schlumberger said in a statement. (Reporting by Ole Petter Skonnord, writing by Gwladys Fouche; Editing by Subhranshu Sahu)