The world’s largest oil-field services provider has agreed to purchase an oil company that provides essential gear needed in oil drilling, including pumps and blowout preventers, in a deal worth $14.8 billion, media reports said. Schlumberger Ltd. was set to acquire Cameron International Corp. and purchase shares for $66.36 apiece as part of an agreement that was announced Wednesday before regular trading began in New York City.

Combining the companies could allow crude oil clients to save costs by streamlining processes, Bloomberg reported.

Current Cameron stockholders will receive a payment of $14.44 and 0.716 of Schlumberger shares for each Cameron share. The announcement led to Cameron’s shares moving up Wednesday to $62.50 while Schlumberger’s shares fell to $71.50.

Jack Moore, chairman and CEO of Cameron, stressed the competitive advantage that would result from combining the two companies. “For our shareholders, this combination provides significant value, while also enabling them to own a meaningful share of Schlumberger,” Moore said. “Together, we will create a premier oil field equipment and service company with an integrated and expanded platform to drive accelerated growth.”

Cameron and Schlumberger had previously worked together. In 2012, the companies partnered in a joint venture called OneSubsea, which combined the companies' strengths to focus on deep underwater oil wells.

With the drop in global oil prices over the last year, oil companies have begun to cut back on expensive exploration products, affecting companies such as Cameron and Schlumberger.

Paal Kibsgaard, chairman and CEO of Schlumberger, underscored the potential for new technologies and breakthroughs with the deal. “We believe that the next industry technical breakthrough will be achieved through integration of Schlumberger's reservoir and well technologies with Cameron's leadership in surface, drilling, processing and flow control technologies,” he said.