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Schlumberger to invest almost $400M into carbon capture play

Illustration of two smoke stacks crossed as if dueling one another.

Illustration: Aïda Amer/Axios

Oilfield services giant Schlumberger has agreed to pay close to $400 million to acquire 80% of Norwegian carbon capture company Aker Carbon Capture.

Why it matters: The deal is the latest way for the oil sector to stake a claim in capturing and transporting carbon dioxide.

Zoom in: Schlumberger is combining its own carbon capture business with Aker Carbon Capture, and Schlumberger will own 80% of the combined business while Aker Carbon Capture will own 20%.

  • Schlumberger agreed to pay 4.12 billion Norwegian krone ($381.5 million) for the stake and could also make 1.36 billion Norwegian krone ($125.6 million) in performance-based added payments over three years.

The big picture: Oil companies see carbon capture technology as a low-carbon extension of their commodity pipeline businesses.

  • Last year Exxon acquired carbon capture and storage company Denbury in an all-stock deal valued at $4.9 billion.
  • Other oil companies like Occidental are showing interest in direct air capture technology, which is a different technology than carbon capture.

Katie's thought bubble: Oil companies have the biggest balance sheets for acquiring and developing low-carbon technologies, despite the oil sector's relatively slow moves to date.

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