LNG giant Golar LNG and oilfield services provider Schlumberger have announced the creation of OneLNG, a joint venture to ‘rapidly develop’ low cost gas reserves to LNG.

According to Schlumberger’s press release on Monday, the combination of Schlumberger reservoir knowledge, wellbore technologies and production management capabilities, with Golar’s low cost FLNG (Floating LNG) solution, will offer gas resource owners a ‘faster and lower cost’ development thereby increasing the net present value of the resources.

Golar and Schlumberger have 51/49 ownership of the joint venture and the companies have agreed an initial investment commitment to cover the estimated equity needed to develop the first project.

In addition, Schlumberger said the parties will, on a project-by-project basis, discuss additional debt capital as required. This future financing will take into account Golar’s FLNG intellectual property through an equitable contribution mechanism to be agreed between the parties.

Golar Vice Chairman, Tor Olav Troim, said, “Our new venture with Schlumberger provides a powerful union of their oilfield services technology and production management business, and our low cost FLNG solution. It leverages Golar’s LNG expertise, and builds upon our industry leading position as a midstream solutions provider.”

Schlumberger, President Operations, Patrick Schorn, commented, “This new joint venture is uniquely positioned to optimize the development of low cost gas reserves. The technology platform and production management capability that Schlumberger brings will enable a total system approach, leading to a simpler and fast-tracked FID process, and reliable operational execution for the benefit of the gas resource owners.”

The oilfield services company explained that OneLNG will be the exclusive vehicle for all projects that involve the conversion of natural gas to LNG, which require both Schlumberger Production Management services and Golar’s FLNG expertise.

“After reviewing the current market opportunities where 40% of the world’s gas reserves can be classified as stranded, both parties are excited at the future prospects of OneLNG and are confident that it would conclude 5 projects within the next 5 years,” Schlumberger concluded.