Schlumberger, Eurasia Drilling enter Russian alliance

Schlumberger has signed a letter of intent with Eurasia Drilling Co. Both parties have agreed to sell and acquire each other’s drilling and service assets, while entering a strategic alliance in the countries of the former Soviet Union (CIS).

Offshore staff

MOSCOW -- Schlumberger has signed a letter of intent with Eurasia Drilling Co. Both parties have agreed to sell and acquire each other’s drilling and service assets, while entering a strategic alliance in the countries of the former Soviet Union (CIS).

Among other things, Eurasia offers offshore drilling services to Russian and international oil and gas companies in the Russian, Kazakh, and Turkmen sectors of the Caspian Sea.

Schlumberger will sell all its drilling, side track, and workover rigs currently operating in the region (mainly in West Siberia) to Eurasia. Schlumberger will in return purchase the Eurasia drilling services businesses, including its directional drilling, measurement while drilling, cementing, and drilling fluids services to support 80 rigs, with the field crews transferring to Schlumberger.

In addition, Schlumberger will become the preferred supplier of drilling services to Eurasia Drilling for up to 200 rigs for a five-year period.

Maurice Dijols, president of Schlumberger Russia added, “The combination of Eurasia’s drilling rig footprint with Schlumberger drilling services offers an unmatched solution to customers in Russia. The recent merger of Smith International with Schlumberger will allow us to develop fit-for-purpose drilling assemblies in conjunction with the additional drilling services and drilling fluids services needed to address the active Russian well construction market. In addition, the alliance will also provide opportunities for both companies to deliver a unique offering including the deployment of the latest technologies for the more complex onshore and offshore markets.”

10/05/2010

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