Global oilfield services player Schlumberger has announced an agreement to buy a 51 per cent majority interest in Russia's Eurasia Drilling Company, following a previous failed takeover bid in 2015.
The deal extends a strategic alliance that two companies have had since 2011. Schlumberger said in a statement: "The agreement extends successful long-term relationship in the conventional land drilling market."
The agreement, with an undisclosed value, is still subject to approval by the Federal Antimonopoly Service of Russia (FAS). In 2015 Schlumberger made a bid for Eurasia Drilling but the deal failed after the FAS delayed approvals.
Dr. Alexander Djaparidze, EDC's chief executive officer said: "I warmly welcome Schlumberger as our majority shareholder. It builds on our strategic alliance with Schlumberger since 2011 and our mutually beneficial business relationship since 2007. The combination of the technology knowhow and operational expertise of Schlumberger coupled to the financial strength of the Investment Funds, brings significant benefits to our customers and the Russian conventional land drilling market."
Eurasia Drilling has previously said that it had agreed the principal terms of investment by a consortium of the Russian Direct Investment Fund (RDIF), the Russia-Chinа Investment Fund (RCIF, created by RDIF and China Investment Corporation) and leading Middle Eastern co-investors.