Raytheon [RTN] yesterday said it has sold intellectual property it has developed that combines radio frequency and critical fluids (CF) technologies for oil extraction to oilfield services provider Schlumberger [SLB] for an undisclosed amount.
Under the deal terms, Raytheon will receive royalty payments from Schlumberger if and when the company is able to make money using the new technology to extract oil from shale.
Raytheon has successfully tested the oil extraction technology in a laboratory environment. Schlumberger will field test the technology.
Raytheon developed the new technology with CF Technologies. Raytheon has no intention of entering non-core markets such as the oil extraction business but said it will apply its technology in adjacent markets.