Baker Hughes has said it plans to buy back $1.5billion of shares and $1billion of debt using the breakup fee it will receive following the collapse of its proposed buyout by Halliburton.
The company will get back $3.5billion as part of a merger agreement.
It comes after the deal between the two companies was terminated on Sunday after opposition from both US and European antitrust regulators.
The US Justice Department had filed a lawsuit last month the stop the $28billion deal.
It argued it would leave only two dominant oilfield service companies, with Schlumberger being the other.