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The world’s largest oilfield services firm. Schlumberger. has won preliminary approval to complete a three-year-old process to buy into Russia’s biggest oil driller. Eurasia Drilling Company Ltd.
Russia’s special commission on Foreign Investment approved Schlumberger to buy a stake of 25% to 49% in Eurasia Drilling. subject to conditions. Federal Anti-Monopoly Service head Igor Artemyev said. according to a transcript on the government’s website. Bloomberg reported.
The regulator represented Russia in its on-off talks with Schlumberger and prepared the case for the commission.
Schlumberger shifted its sights to seek a smaller stake in the driller after Russia blocked its initial bid made in 2015 to possibly buy the whole company.
As tensions mounted with western nations over the conflict in Ukraine and the U.S. expanded sanctions to Russia’s energy industry. the Kremlin raised concerns Schlumberger would control a significant part of the oilfield services industry in a nation heavily dependent on oil and gas revenues.
The special commission recommended combining Schlumberger’s deal with a joint bid from the Russian Direct Investment Fund and the United Arab Emirates. with the oilfield services provider getting 25% and the other companies 16%. Artemyev said.
“Twenty-five plus 16 is a very good configuration. not getting control but bringing in hundreds of millions of dollars. or even billions. for Eurasia. which gets interested foreign investors with great experience and modern technology.“ Artemyev said.
The commission encouraged Schlumberger and the RDIF to combine their bids to “lead to the final decision of how much is held by which shareholder: Russian. United Arab Emirates and Schlumberger.“ he said. without providing more details.
Eurasia. which holds roughly a 20% share of the Russian oil-drilling market. last year also agreed to investment from China and the Middle East with RDIF.
The drilling company focuses on servicing conventional oil fields in Russia. which do not fall under international sanctions that target Arctic. deepwater and shale-oil projects.
