Nedlands-based software company ISS Group Ltd has signed a major new international marketing agreement with global oilfield services company Schlumberger, that could lead to a big boost in ISS's revenue.
Nedlands-based software company ISS Group Ltd has signed a major new international marketing agreement with global oilfield services company Schlumberger, that could lead to a big boost in ISS's revenue.
The contract, with guaranteed payments of about $17 million phased over several years, grants Schlumberger exclusive rights to market ISS's BabelFish™ in the upstream oil and gas industry.
Full announcement pasted below:
ISS GROUP ANNOUNCES UPSTREAM OIL AND GAS AGREEMENT WITH SCHLUMBERGER
ISS Group Limited (ASX:ISS) is pleased to announce it has signed an agreement with the world's
leading oilfield services company, Schlumberger. The contract, with guaranteed payments of
approximately AUD$17 million, phased over several years, grants Schlumberger exclusive rights
to market ISS's BabelFish™ in the upstream oil and gas industry. Revenue to ISS is likely to
exceed this initial figure as ISS will also receive maintenance annuities on the Schlumberger
sales, and revenues on sales receipts above initial license pre-purchases.
Schlumberger has a world-class deployment network for digital oil field solutions and service
operations that optimise reservoir performance for customers. The agreement will leverage ISS
Group's production integration software, BabelFish, alongside Schlumberger's current technology
for upstream production data management, surveillance, analysis and modelling.
Mr Shane Attwell, Managing Director of ISS Group, said "We are delighted to be a part of this
significant agreement. It combines the advanced BabelFish visualisation and operations solution
with the Schlumberger global sales force and service capability to deliver a unique value
proposition to oil and gas operators wishing to take the next steps to asset management within
the digital oil field."
"The ISS Group technologies complement the Schlumberger Information Solutions (SIS)
production operations offering and expand our ability to deliver digital oil field solutions," said
Tony Bowman, President, Schlumberger Information Solutions. "In combination with our Avocet
production data management, surveillance, analysis and modelling solutions, the BabelFish webbased
visualisation framework will give production engineers and managers immediate access to
actionable information - to proactively monitor and make adjustments to operations systems."
Mr Attwell highlighted that, "The agreement with Schlumberger applies only to the upstream oil
and gas industry. It does not affect the ISS software and services provided to industries such as
midstream and downstream Oil and Gas, Refining, Minerals, Chemicals, Energy, Manufacturing
and Power. These industries will also benefit as a result of the increased research and
development commitment by ISS to provide all customers with innovative market leading
technologies."
Mr Attwell further commented that "ISS Group is gaining a significant foothold in a number of
industries and applications. The agreement allows ISS to benefit from Schlumberger's global
sales resources, while continuing to strengthen its own position in mining and minerals, downstream
oil and gas and the broader manufacturing sector, which has enormous latent potential for
BabelFish applications." With recent significant contract wins in oil and gas as previously
announced, the agreement with Schlumberger continues to validate the great potential of the
BabelFish product suite on a global basis.
