Schlumberger has agreed to acquire 51% stake in Eurasia Drilling Company (EDC) for an undisclosed sum.
Eurasia Drilling provides onshore and offshore drilling and well services for the customers. It owns and operates one of the largest fleets of land drilling and workover units in the world.
The firm’s onshore drilling services include construction of new oil and natural gas wells on land. It has separate onshore workover fleet in Russia.
EDC will use a fleet of mobile rigs for sidetracking services on existing wells. The company is claimed to own and operate the largest active jack-up fleet in the Caspian Sea.
The deal is subject to the satisfaction of customary conditions, including approval by the Federal Antimonopoly Service of Russia.
The agreement is said to expand the long-term relationship established by the two companies in 2011.
EDC CEO Dr Alexander Djaparidze 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."
Schlumberger provides technology for reservoir characterization, drilling, production, and processing to the oil and gas industry.
With operations in around 85 countries, the company’s products and services range from exploration and production to integrated pore-to-pipeline solutions for optimizing reservoir performance.
With principal offices in Paris, Houston, London and The Hague, the company reported revenues of $27.8bn in the last year.