The world biggest oil service company Schlumberger announced its plans to buy 45.5% shares of the biggest drilling company in Russia – Eurasia Drilling Company (EDC). Total cost of the deal is estimated at $1.7 billion.
According to EDC, by December 31, 2014 Alexander Japaridze, General Director Schlumberger, owned 30.2% shares of the company and 22.4% was owned by Alexander Putilov, who headed Rosneft at the end of the 1990s.
Moreover, during two year period, which starts three years after closure of the deal, Schlumberger will have the right to buy the remaining EDC shares. Schlumberger added that it is planned to close the deal in quarter 1, 2015. Among the conditions, which could prevent closure of the deal, are named unfavorable material changes in EDC and introduction of sanctions by EU and USA against the company or its owners.
EDC is the biggest player at the Russian market of oil service and drilling services. In November 2004 EDC signed the agreement with LUKoil to buy 100% shares in the authorized capital of LUKoil-Drilling, which was renamed into the Drilling Company Eurasia. At present Drilling Company Eurasia is involved in construction, repair and reconstruction of oil and gas wells on the licensed sections of LUKoil, Rosneft, Gasprom Neft, Rusvietpetro and other oil and gas companies. Other EDC daughter companies also work in the Caspian region and on the north of Iraq.
In 2913 share of BKE at the Russian drilling market constituted 23%, while EDC total share – 29%. According to EDC, in 2014 the company’s enterprises drilled 1792 wells, down 10% against 2013.
