As per the terms of the deal, Weatherford will sell its laboratory and geological analysis business, including employees and associated contracts to the CSL Capital Management-led group. The oilfield service company plans to utilize the proceeds from the sale to bring down its debt.

Weatherford president and CEO Mark A. McCollum said: “We are happy to have signed an agreement with a group led by CSL Capital Management, who has a strong track record of investing in upstream oilfield services and who recognizes the importance of continuing our commitment to providing the highest level of service to our customers.

“Weatherford’s laboratory business is a leader in the industry and its state of the art equipment and its highly-qualified workforce are well recognized in the industry. We believe that this transaction will unlock the full potential of this business for its customers and its employees.”

The sale of the laboratory services business is part of a series of planned divestitures by the oilfield service company to reduce its overall debt and also to maximize its shareholder value by refocusing its portfolio on core businesses aligned closely with its long-term strategy.

In July 2018, Weatherford made a deal with ADES International to sell its onshore drilling rig business in Algeria, Kuwait and Saudi Arabia for $287.5m.

After offloading the laboratory business, the oilfield service company plans to continue to maintain a close, collaborative relationship with CSL Capital in order to continue to deliver services to their joint customers.

CSL Capital will complete the acquisition alongside Carlyle Energy Mezzanine Opportunities Fund II (Carlyle), which will offer minority common equity and growth capital.

CSL Capital founding partner Charlie Leykum said: “We are pleased to enter in to this transaction with Weatherford and we are excited to work with the talented employees of Weatherford Laboratories.

“Our intention is to invest in and grow this business to extend the leadership of this world-class laboratory and reservoir description company to serve the developing needs of the energy industry.

“CSL Capital will work closely with Weatherford over the next few months to ensure a seamless transition of the operations of the business to minimize any impact to customers, employees and suppliers.”

The deal is anticipated to be completed by the year end and will be based on receipt of regulatory approvals, consents along with other customary closing conditions.