French oil services company Technip SA said Thursday it signed an agreement with Schlumberger Ltd. to jointly develop subsea integrity and surveillance capabilities for flexible pipes used in deep offshore oil and gas production.
Flexible pipes are used in offshore drilling to inject fluids and gases, as well as carry oil and gas supplies.
The new agreement extends a partnership between the companies that began in 1998. The deal will first focus on surveillance systems for flexible pipes used in the deep water off Brazil.
"By combining Technip's technical and manufacturing knowledge of flexible pipe with Schlumberger's surveillance technology, a new generation of intelligent flexible pipe will be created," said Alain Marion of Technip.
Terms of the agreement were not disclosed.
Shares of Schlumberger fell $2.31, 3.5 percent, to $64.40 on Thursday.