Schlumberger Agreed to Transfer Part of Its Technologies to Russia
OREANDA-NEWS International oilfield services company Schlumberger is ready to provide a part of the technologies to the Russian competitor in order to buy a share in the largest Russian service company Eurasia Drilling Company (EDC).
It is reported that this is done in case Schlumberger will have to leave Russia because of us sanctions
Сhlumberger has been trying to acquire a stake in Eurasia Drilling since 2015. At first, it was about the purchase of 46% with the possibility of redemption of the remaining 54% three years after the first stage of the transaction. However, the Russian authorities opposed, considering that the purchase of EDC Schlumberger carries strategic risks. After that, it was about buying only a controlling stake.
Russia has been considering Schlumberger's repeated bid to buy a stake in EDC for more than a year. So, in the summer of 2017, Schlumberger asked to approve the purchase of 51% EDC, but at the beginning of 2018 reduced the bar to 50% minus one share and structured the deal so that Schlumberger's share in the company will be less than 25%, the rest will belong to its pension Fund.
However, Schlumberger has pledged not only to sell its stake in EDC if the US strengthens sanctions against the Russian oil and gas sector, but also to keep the imported technologies in the Russian company. What technologies are in question, is still unknown. In the next two months, the issue of approval of the transaction Schlumberger and EDC will again be submitted to the foreign investment Commission.
The Russian Direct Investment Fund (RDIF) together with the Fund from the UAE Mubadala plans to buy another 16.1% of EDC. In addition, the parties agreed that the package will buy Schlumberger, and then a stake in the company will acquire RDIF and Mubadala, the sources say.
Representatives of Schlumberger and EDC did not respond to requests from sources. In RDIF and the FAS did not comment on this information.
Earlier, the head of the Federal Antimonopoly service of Russia Igor Artemyev reported that FAS offered Schlumberger to extend the offer to buy a stake in EDC, which expired on September 1.