Eurasia Drilling Company Limited (EDC) and Schlumberger announced Tuesday the completion of the sale and purchase of each other's drilling and service assets together with the formation of a Strategic Alliance in line with the Letter of Intent announced on 4th October 2010.
The key elements of the transactions completed on 28th April, 2011 are:
The total value of the transaction is approximately US $260 million, and includes a cash consideration of approximately US $173 million from EDC to Schlumberger.
Alexander Djaparidze, Chief Executive Officer of EDC, commented: "This is an important new alliance between two industry leaders that will further enhance our ability to improve performance for our Russian and international customer base. These additional rigs will strengthen our market position as well further diversify our client base in line with our development strategy. We are delighted to welcome our new colleagues to EDC."
Maurice Dijols, President Schlumberger Russia added: "The combination of Eurasia's drilling rig footprint with Schlumberger drilling services offers a unique solution to customers in Russia. The integration of Smith International and Schlumberger drilling technologies will lead to fit-for-purpose drilling assemblies as well as to additional drilling services and drilling fluids services for the Russian market—both on land and offshore."
EDC is the largest independent provider of onshore drilling services in Russia, as measured by the number of meters drilled, providing onshore integrated well construction services and workover services. In addition, the Company provides offshore drilling services in the Caspian Sea. The Company offers its onshore integrated well construction services and workover services to local and international oil and gas companies primarily in Russia and its offshore drilling services to Russian and international oil and gas companies in the Russian, Kazakh and Turkmen sectors of the Caspian Sea. The Company is traded on the London Stock Exchange under the symbol "EDCL".
Schlumberger is the world's leading supplier of technology, integrated project management and information solutions to customers working in the oil and gas industry worldwide. Employing approximately 108,000 people representing over 140 nationalities and working in approximately 80 countries, Schlumberger provides the industry's widest range of products and services from exploration through production.
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