Schlumberger, the world’s largest oil services group, announces it has acquired energy equipment manufacturer Cameron International for 12.8 billion dollars, claims The Wall Street Journal. Other media sources talk about a transaction of 14.8 billion dollars, cash and stock. The transaction will create the oil industry’s first complete drilling and production systems, writes enerdata.net.

“The real excitement here is around what we can create by combining our technology offerings,” Schlumberger Chief Executive Paal Kibsgaard said. “We will basically generate better performance for our customers.” Worldwide, this deal is the 5th largest in energy industry.

The company expects synergies related to reducing operating costs, streamlining supply chains, and improving manufacturing processes, with a growing component of revenue synergies in the second year and beyond. The combined revenues of these two companies last year were of 59 billion dollars.

The transaction is subject to Cameron shareholders’ approval, regulatory approvals and other customary closing conditions. It is anticipated that the closing of the transaction will occur in the first quarter of 2016. The two groups combined their sub-marine activities in the 2013 joint venture OneSubsea, of which 40% is owned by Schlumberger and 60% by Cameron.

The deal continues the consolidation trend in the oil and gas services industry as a result of the drop of oil price, that took a heavy toll: tens of thousands of jobs lost. Late in 2014, Halliburton bought Baker Hughes for 35 billion dollars, but this transaction is still under review.