Eurasia Drilling Company Limited ("EDC") has finalized an agreement to acquire 100% interest in OOO "Kogalym Well Workover Division" (KWWD) and OOO "Urai Well Workover Division" (UWWD) from OOO "Lukoil-Western Siberia", a subsidiary of Open Joint Stock Company Lukoil.
KWWD and UWWD together employ over 2,500 staff to perform well workover, well reconditioning and well servicing operations, primarily for the TPP "Kogalymneftegaz" and TPP "Urayneftegaz" divisions of Lukoil-Western Siberia. Combined production assets include 150 workover rigs and 107 active crews supported from 7 operational facilities.
In addition to the sale and purchase agreement, Lukoil and EDC have signed a five-year Workover Framework Agreement covering pricing and work volumes pertaining to KWWD and UWWD activities.
Dr. Alexander Djaparidze, EDC's Chief Executive Officer, commented, "One of the main strategic goals of the Company is to become a market leader in each of our core business lines. With the 87 workover rigs we previously owned our fleet will now be 237 rigs, transforming EDC into a major player in the growing Russian workover market. The new Workover Framework Agreement will provide assurance to Lukoil it will receive the quantity and quality of workover services it needs for the next five years in the areas of operations while giving EDC the confidence it needs to invest, prudently, in its new workover assets."
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