Accenture to purchase Schlumberger unit

Global consulting firm Accenture plans to buy Schlumberger’s management consulting unit, which employs about 250 people in nine offices across the globe.

The deal, announced this week, would expand Accenture’s portfolio, bolstering its ability to help its clients in the upstream oil and gas sector sharpen their competitive edge as falling oil prices force many exploration and production companies to slash costs and pare back.

Amid the global crude price slump, energy companies are facing heightened pressure to cut back on the costs of extracting oil and gas from the ground, ensure large capital projects are completed on time and within budget, and expand their business portfolios into new sectors, such as renewable energy sources, Jean-Marc Ollagnier, Accenture Resource’s group chief executive, said in a statement.

Becoming more agile

By acquiring Schlumberger’s 11-year-old consulting division, Accenture would strengthen its ability to help oil and gas companies become more agile, cost-efficient and execute “digital-driven transformations,” Accenture said in an announcement Monday.

“The upstream oil and gas sector is undergoing a fundamental transformation, partly driven by oil price volatility, but also by increased regulation and technology advances,” Ollagnier said.

“This acquisition will enhance our capabilities in helping clients navigate these challenges with a combination of business, digital and technology know-how that differentiates us in this global market.” Still needs approval

The companies did not disclose terms of the deal, which must be approved by regulators before it is final.

Founded in 2004, Schlumberger’s Business Consulting unit works with upstream companies to help them refine and manage their business strategies, operations, workers, capital projects and mergers and acquisitions. Specialized experience

The deal would couple Accenture’s broader consulting portfolio with Schlumberger’s specialized experience working with exploration and production on new technologies and other challenges facing the industry, Jean-Marie Rousset, senior vice president of Schlumberger Business Consulting, said in a statement.

“This will provide a unique value to all E&P companies,” Rousset said.

Accenture said it plans to hire all of Schlumberger’s 250 consultants.

“We anticipate minimal need for employees to relocate between cities or regions as part of this acquisition,” Arthur Hanna, the managing director who leads Accenture’s energy strategy business, said in a statement.