Closing on the first 26% is expected in the first quarter of 2004. Completion of each of the three stages is subject to performance standards and other customary conditions. The total acquisition price will be determined by a performance-based formula, and paid one-third in cash and two-thirds in Schlumberger stock.
"We are very pleased to have reached this agreement with PetroAlliance, the leading independent Russian service provider," commented Andrew Gould, chairman and chief executive officer of Schlumberger. "Advances in oilfield service practices and technologies have already played significant roles in Russia, and making new technology available through broader service options responds to a growing need and expresses our confidence in the continuing development of the Russian oil and gas industry."
PetroAlliance was established in 1995 and has steadily expanded its activities to include seismic, wireline logging and perforating, directional drilling, pumping, integrated project management, and information management and IT-related services. PetroAlliance provides services to a number of both Russian and international oil and gas operators.
Alexander Djaparidze, chairman and chief executive officer of PetroAlliance, remarked, "We welcome this agreement with Schlumberger and believe that it offers a significant opportunity for the continued growth of the company's activities. This agreement will allow us to have access to the best oilfield services technology on the market and position PetroAlliance to become the leading player in provision of cutting-edge oilfield technology in Russia."
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