Oil services giant Schlumberger is pulling the plug on its proposed US$1.7 billion acquisition of Russian drilling contractor Eurasia Drilling Co. (EDC) to focus on other merger and acquisition (M&A) opportunities.
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The LSP-1 ice resistant fixed platform in the Caspian Sea. Image from Eurasia. |
The agreement between the two companies was signed in January 2015 and would have seen Schlumberger acquire a minority interest of 45% in EDC. Schlumberger also would have had the option, at its election, to purchase the remaining shares in EDC during a two-year period beginning three years from the closing of the transaction.
The deal has been through several extensions, of which the latest is set to expire on 30 September, and was originally set to close in 1Q 2015. It was pending confirmation from the Russian Federal Anti-Monopoly Service and the Government Commission on Monitoring Foreign Investment.
EDC provides offshore drilling services in the Caspian Sea and is the largest provider of such services in the sectors where it operates based on the number of jackup drilling rigs. The company offers its offshore drilling services to Russian and international oil and gas companies in the Russian, Kazakh and Turkmen sectors of the Caspian Sea.
Schlumberger has been in takeover mode this year. Most recently, the oil services company announced its takeover of US-based Novatek Inc. and Novatek IP, LLC. that will provide a new platform for Schlumberger to improve drilling performance in its portfolio.
Most notably, Schlumberger entered a US$14.8 billion agreement to acquire Cameron International in a stock and cash deal that will offer the industry’s first complete drilling and productions systems.
Read more:
Schlumberger, Eurasia merger gets third extension
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