Bauer has announced that its equipment division Bauer Maschinen has signed a letter of intent with oil and gas technology supplier Schlumberger.
The two businesses hope to create a joint venture to work on development and construction of larger deep drilling rigs for the oil, gas and geothermal sectors.
Bauer has said that it is expected that the subsidiaries of Bauer Maschinen that operate in this segment shall be contributed to the joint venture. As part of the joint venture, rigs will be developed and specifically built for Schlumberger and other rig types, including associated equipment, will be offered to international rig drilling companies.
According to Bauer, the planned cooperation could achieve revenues of more than €100M (£73M) and will open up new opportunities.
Final agreement of the joint venture is expected before the end of the year.