Schlumberger, Thermal Energy Partners form geothermal alliance

Oilfield services provider Schlumberger Limited (NYSE:SLB) and Texas-based geothermal firm Thermal Energy Partners LLC (TEP) have entered into an agreement to create a geothermal project development company.

Schlumberger said its new business unit, Schlumberger New Energy, will form one half of STEP Energy, which will use the combined power of both companies to develop and execute profitable geothermal projects.

The first mission for STEP Energy will be to quickly reach 100 MW of geothermal capacity, TEP CEO Bruce Cutright said in a statement.

"By combining our geothermal, subsurface and drilling expertise with TEP’s experience in project development and risk mitigation, we will develop de-risked and streamlined geothermal projects on a global scale," added Ashok Belani, executive vice president of Schlumberger New Energy.

The partners are already working on one project, the 10-MW Nevis geothermal scheme, on the Caribbean island of Nevis, which Schlumberger says will be the first assignment for the new company.

The Nevis project developer is NRE International Inc (NREI), TEP’s subsidiary, which last year hired Schlumberger Integrated Drilling Services (IDS) to install geothermal production and injection wells for the future plant.

Besides Nevis, STEP Energy has additional opportunities to expand production in the Eastern Caribbean and in North and South America, Schlumberger added.

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