With the formation of OneLNG, Schlumberger Ltd. (NYSE: SLB) and Golar LNG (NASDAQ: GLNG) have strengthened a bond formed earlier this year in their pursuit to jointly develop low-cost, stranded natural gas and bring it to market.

The joint venture (JV) company, in which Golar and Schlumberger have a respective ownership of 51% and 49%, aims to finish five projects within the next five years, the companies said in a July 25 press release.

“We have instituted a detailed study of the market and as a result, we are pursuing a number of exciting opportunities and expect to sign a project within the next 6-9 months,” Schlumberger spokeswoman Susan Ganz told Hart Energy in an emailed statement. “It is estimated that 40% of the world’s gas reserves can be classified as stranded.”

While Golar brings its floating LNG (FLNG) vessels and technology to the partnership, Schlumberger is putting forth its reservoir knowledge, wellbore technologies and production management capabilities. By working together, the two say the JV company can offer owners of natural gas assets quicker and less costly development.

The news was delivered as the oil and gas industry continued to rebound from a downturn that has increasingly focused on technology and its ability to produce, not only in terms of production, but also in terms of cost- and time-savings and ultimately, its ability to produce profit while meeting the world’s future energy needs.

Cowen & Co. called Golar and Schlumberger’s five-year guidance aggressive.

But it “reaffirms our view that FLNG’s low unit cost and absolute cost relative to land-based facilities should result in additional FLNG projects, despite [Golar’s] accelerated focus on FSRU [floating storage and regasification unit] conversions against the outlook that spot LNG will be attractive to incremental buyers in the coming years,” Cowen & Co. analysts said in a note before referring to the GoFLNG Golar Hilli vessel.

“GLNG’s first conversion project is on-target to be delivered in mid-2017; successful execution should give the market confidence in the technology.”

The project offshore Cameroon aims to develop 14 billion cubic meters (Bcm), or 500 Bcf, of natural gas resources from offshore Kribi fields being developed by Perenco and Cameroon’s Société Nationale des Hydrocarbures. The gas will be exported to global markets from the GoFLNG Golar Hilli, which is being constructed at the Keppel Shipyard in Singapore.

The JV comes about six months after Golar and Schlumberger said they signed a memorandum of understanding, agreeing to market gas monetization solutions to owners, investors and governments with goals of using low-cost LNG production solutions to access uneconomic gas reserves and bring them into production more quickly.

“This new joint venture is uniquely positioned to optimize the development of low cost gas reserves,” Patrick Schorn, president of operations for Schlumberger, said in a prepared statement. “The technology platform and production management capability that Schlumberger brings will enable a total system approach, leading to a simpler and fast-tracked FID [final investment decision] process, and reliable operational execution for the benefit of the gas resource owners.”

Golar Vice Chairman Tor Olav Troim said the JV “provides a powerful union of their oilfield services technology and production management business, and our low-cost FLNG solution.”

It essentially creates an “integrated end-to-end solution for developing stranded gas,” according to Golar.

Focus will primarily be geared toward stranded gas resource owners with limited development experience and financial capacity, Ganz said.

“However, several other types of projects are also being discussed, including early-production solutions for major gas reserves as well as onshore development for exports of LNG,” she added.

Velda Addison can be reached at vaddison@hartenergy.com.