Hydro signs $13 million Petrel deal with Schlumberger

Global software agreement establishes Petrel as reservoir characterization ‘standard.’

You’d think that, in the run-up to a major corporate merger, software decisions might be on hold, pending tussles over rationalization and future toolset ‘standardization.’ Not so for (ex-Norsk) Hydro, which has engaged on a veritable software shopping spree since the announcement of its merger with Statoil. The acquisition program has been accompanied by a vociferous campaign of press releases.


Latest in the series is the announcement of a ‘global software agreement,’ a $13 million deal that establishes Petrel as Hydro’s subsurface reservoir characterization standard. Hydro chose Petrel for seismic interpretation and well log correlation and as a complementary application for reservoir modeling.


Justin Rounce, Schlumberger Information Solutions VP Software, said, ‘The ability to share knowledge and update models with new data allows Hydro to optimize exploration and development plans based on the analysis of numerous scenarios. Petrel’s model centric workflow also supports greater collaboration than has traditionally been possible.’


In a separate announcement, Statoil presented its view on the synergy potential from its merger with Hydro’s E&P arm. Merger synergies are expected from cost reduction, higher revenues from better resource deployment and new growth opportunities thanks to larger organizational and financial clout. Overall cost synergy potential is estimated at NOK 4 billion per year before tax.

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