M-I SWACO Acquires EcoArctica ZAO

M-I SWACO has acquired EcoArctica ZAO, a drilling fluids and solids control company based in Usinsk, Russia. The acquired operations provide products and services to the Russian oil and gas industry, generating revenues of approximately $9 million for the year ended December 31, 2003. EcoArctica, which was formed in 1992, employs 84 full-time personnel.

"The EcoArctica acquisition adds to our ability to service the rapidly growing Russian market," said Don McKenzie, Senior Vice President of Eastern Hemisphere operations. "Combining the EcoArctica business with our existing local operations, including the IKF Services acquisition made in late 2002, will enable us to continue to expand our products and services to Russian and international exploration and production companies. One of the important features of this acquisition is that it gives us much greater exposure to the drilling activities in the Komi Republic. This acquisition further demonstrates M-I SWACO's commitment to this important market."