EDC, Schlumberger form CIS alliance

Eurasia Drilling Company (EDC) and Schlumberger have completed the sale and purchase of each other’s drilling and service assets in Russia.

Offshore staff

MOSCOW-- Eurasia Drilling Company (EDC) and Schlumberger have completed the sale and purchase of each other’s drilling and service assets in Russia.

EDC has acquired numerous onshore rigs working in western Siberia, while Schlumberger has purchased EDC drilling services assets, including directional drilling, cementing and drilling fluids engineering and materials supply.

Under the agreement, Schlumberger also will supply oil and gas services to EDC in the CIS countries over five years, providing opportunities for both companies to deploy the latest technologies for more complex offshore and onshore markets.

The total value of the transaction is $260 million, and includes a cash consideration of around $173 million from EDC to Schlumberger.

EDC is currently strengthening its drilling capability in the Caspian Sea.

In February, the company acquired the jackup Trident XX from Transocean for $ 260 million. This is a Keppel FELS CS Mod V cantilever jackup, capable of operating in water depths of 350 ft (106 m) and drilling to depths of 26,000 ft (7,925 m).

Trident XX will likely be fully occupied this year with development drilling in Turkmen waters, under a long-term contract with Petronas Carigali.

EDC’sASTRA jackup is also committed for a full 12-month program this year in the Russian and Kazakh sectors of the Caspian Sea. Currently it is on duty in Kazakh waters.

Elsewhere in the Russian sector, operations continue at Lukoil’s Yuri Korchagin field ice-resistant platform, where EDC is general contractor for drilling services. A drilling package is due to be upgraded in preparation for an extended reach development phase.

Late last year, EDC commissioned a newbuild jackup from Lamprell in the UAE, which is set to enter service in 2013.

The rig is a LeTourneau designed Super 116E self-elevating mobile offshore drilling platform, which can operate in water depths up to 250 ft (76 m), extendable to 350 ft, with a rated drilling depth of 30,000 ft (9,144 m).

05/03/2011

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