Schlumberger to buys 45.6% of Eurasia Drilling

Despite sanctions against the oil sector in Russia, American company Schlumberger has suddenly decided to buy a 45.6% stake in the largest domestic oil service company Eurasia Drilling with the ability to increase the stake to 100%. The first stage of the transaction in the amount of $1.7 billion is almost two times more than the market value of Eurasia Drilling and in terms of coefficients it is actually at the level of the similar players in the world. However, it is still by a third less than the company cost half a year ago, before the large-scale decline in the oil prices, and the sanctions don’t directly concern it.

Schlumberger has agreed to acquire 45.65% of shares in the largest Russian oil service company Eurasia Drilling (EDC). Now its main co-owners are its general director Alexander Japaridze (30.2%) and Alexander Putilov (22.4%). According to the report of the both companies, the transaction value will make up $1.7 billion ($22 per GDR), i.e. premium to the market price exceeded 80% at the time of the statement. However, it is below the cost of Eurasia Drilling before the fall of the oil prices: in the middle of summer of 2014, the company’s GDR were listed at the price of $33.