Halliburton buys Summit ESP to strengthen artificial lift business

FILE PHOTO - Oil production equipment is seen in a Halliburton yard in Williston, North Dakota April 30, 2016. REUTERS/Andrew Cullen/File Photo

(Reuters) - Oilfield services provider Halliburton Co HAL.N said on Wednesday it would buy oilfield equipment supplier Summit ESP Inc, which is backed by Oklahoma energy and banking billionaire George Kaiser.

Tulsa, Oklahoma-based Summit ESP makes pumps used to maintain well pressure to increase oil and gas production in aging wells. The devices, components in a business called artificial lift, increasingly are being used to prolong the life of shale wells.

Financial terms of the deal were not disclosed.

Reuters reported in June that Halliburton was in late-stage talks to acquire Summit.

Summit ESP was founded in 2011 and is led by executives who had earlier held senior posts at Baker Hughes, including Chief Executive John Kenner.

The company has expanded quickly in the United States and Canada, and in May announced it had installed its 8,000th electric submersible pump (ESP), an increase of 1,000 since November.

Reporting by Ahmed Farhatha in Bengaluru; Editing by Sriraj Kalluvila