Schlumberger, Itron Sign European Meter Agreement
Paris, Sept. 11 (Bloomberg) -- Schlumberger Ltd. and Itron Inc. signed agreements to license and distribute automatic utility meter-reading technology and products in Europe, the companies said.
New York-based Schlumberger, the world's largest oilfield service company whose main business is providing drilling and other oil services, wants to expand its meter businesses as utilities improve their technology and service to meet new competition in deregulated markets.
With the agreement, Schlumberger and Itron, a Spokane, Washington-based utility meter maker, will sell each other's products that allow water, natural gas or oil meters to be read from remote locations. Schlumberger has technology that uses electric lines to retrieve meter data, while Itron has technology that transmits information using radio frequencies.
''With deregulation and pressure on future operational costs at utilities this is a market in development,'' said Herve Schwartz, solutions marketing manager at Schlumberger RMS, the company's metering unit.
The European utility meter market is estimated to have annual sales of about $1.5 billion, he said.
Schlumberger will also gain the right to license and make meter systems using Itron's technology, Schwartz said.
Shares of Schlumberger rose 2 1/8 to 51 1/8. Shares of Itron rose 1/8 to 7 1/8.
17:11:13 09/11/1998
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