Nearly two years after a failed attempt, oilfield services giant Schlumberger is set to acquire a majority stake in Eurasia Drilling Co. (EDC).
The Astra jackup. Image from EDC.
Schlumberger has entered a deal to take 51% stake in the Russian onshore and offshore drilling and well services contractor.
Eurasia stakeholders agreed to sell the majority stake to Schlumberger yesterday (20 July), however, the deal is subject to customary conditions, including approval by the Federal Antimonopoly Service of Russia.
"I warmly welcome Schlumberger as our majority shareholder,” Dr. Alexander Djaparidze, EDC's CEO said. “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."
EDC operates the largest jackup drilling rig fleet in the Caspian Sea and provides offshore rig management services.
The first deal between the two companies was signed in January 2015 for Schlumberger to acquire a minority interest of 45% in EDC for US$1.7 billion. The agreement also had an option for Schlumberger to elect to buy the remaining shares in EDC during a two-year period beginning three years from the closing of the transaction.
The first deal saw several extensions, and was originally expected to close in Q1 2015. However, in September 2015, Schlumberger terminated the deal to focus on other merger and acquisition opportunities, which have been plentiful for the oilfield services giant since then.