Evan Vitale Consulting: Accenture to buy Schlumberger's consulting business

Monday, August 17, 2015

Accenture to buy Schlumberger's consulting business – Chron.com (blog)

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

With a barrel of oil fetching less than half it did a year ago, oil and gas companies are scrambling to look for new ways to operate more efficiently while spending less money. Amid a global crude 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.

By acquiring Schlumberger’s 11-year-old consulting division, Accenture strengthens 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.”

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. The deal couples 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, managing director, who leads Accenture’s energy strategy business, said in a statement.

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