Schlumberger Ltd, the largest oilfield services provider in the world, is reportedly in advanced talks to acquire Smith International Inc., another big player in the oilfield services. If finalized, this deal would just make the revenues of Schlumberger double that of its nearest rival according to officials familiar with the negotiations.

The deal could be announced by the companies in coming days. However, the deal bringing together two of biggest players in the business of oil-field services, would help rationalize the weakened oilfield sector.

The oilfield services has suffered badly in the time of economic slowdown and this sector saw decreased profits as oil and natural gas companies cut spending on projects in the period of slowdown.

Though, the deal has not yet been finalized but based on Smith’s market capitalization of $7.5 billion on February 19, the purchase price could be as much as $9 billion, according to the media reports. The supposed cost of the deal is on assumption of 20% premium on the market capitalization of Smith. The officials of both the companies were not available for comment.

However, the market analysts are not surprised with the talks of the deal as Schlumberger and Smith have worked together on a joint venture earlier.