Schlumberger has agreed to buy control in Eurasia Drilling


Shareholders of Eurasia Drilling Alexander Dzhaparidze on 20 July agreed to sell 51 percent stake in the company. The buyer will be the American oilfield services company Schlumberger, said in a statement on the website of Eurasia Drilling.

The report notes that the transaction should be approved Federal Antimonopoly service. The representative of the FAS told RBC that the service has not yet received the petition from the buyer.

Eurasia Drilling CEO Alexander Djaparidze said that the company have a decade of experience in business relations, and in 2011, Schlumberger and Eurasia Drilling have signed an agreement on strategic partnership.

Eurasia Drilling is one of the largest drilling companies in Russia, in 2016 its share in this market was 16%. The main client of the company LUKOIL, other big customers — “Gazprom Neft” and “Rosneft”. According to the latest public data (2014), the company controlled by Alexander Japaridze.

Two years ago an American company tried to purchase the Eurasia Drilling. The parties agreed on the terms of the transaction in January 2015: Schlumberger had to pay $1.7 billion for a 45.65% in Eurasia Drilling and the option to buy the remaining shares after three years. However, the deal was submitted for consideration the governmental Commission on foreign investments, which is a few months delayed the decision. In the end, Schlumberger did not wait for approval from the Russian authorities and the deal never took place. In October 2015, Eurasia Drilling announced the delisting from the London stock exchange, buying shares from minority shareholders for $11.75 per share. In the framework of the transaction with Schlumberger, it was planned that the shares of the minority shareholders will redeem for $22. Part of minority shareholders, including UCP Ilya Sherbovich’s Fund and East Capital, did not agree with the redemption price when the delisting and appealed to the court of the Cayman Islands (where was Eurasia Drilling). The court’s decision is expected in autumn 2017.

In early June, during the St. Petersburg international economic forum it was announced that Eurasia Drilling will direct investments of the Russian-Chinese investment Fund (RCIF), the Russian direct investment Fund, is also “the leading funds in the Middle East”. Details of the agreement between the parties was not disclosed. In March, Reuters reported that the state Fund from Mudabala UAE and RCIF are interested in buying 13-15% of the new shares in Eurasia Drilling. Negotiations on the deal continue, the report said the oilfield services company from July 20. EDC is planning to conclude a final agreement c investors “in the near future.”

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