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Fitch cuts rating outlook for Russia’s largest oilfield service company

January 21, 2015, 19:41 UTC+3 LONDON
The rating of Eurasia Drilling has been downgraded from positive to stable
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LONDON, January 21. /TASS/. Fitch has downgraded its rating outlook for Russia’s largest oilfield services company Eurasia Drilling to stable from positive, the international rating agency said on Wednesday.

Fitch cut Eurasia Drilling’s rating, which currently stands at BB, after reports that the world’s leading oilfield services company Schlumberger would buy a stake in Eurasia Drilling, despite US sectoral sanctions against Russia and falling world oil prices.

Under the deal, the US oilfield services firm Schlumberger will buy a 45.65% stake in Eurasia Drilling, the largest provider of onshore drilling services in Russia, for $1.7 billion at $22 per share.

The united company may capture up to 50% of the Russian oilfield services market.

Eurasia specializes in traditional technologies unaffected by the US sanctions against the Russian oil industry. Under the deal, the premium to Eurasia’s market value exceeds 80%

Eurasia Drilling’s stocks grew by 70.6% to $20.85 per share after the deal was announced.

Eurasia Drilling Company was established on the basis of oilfield services assets of Russia’s largest independent crude producer LUKoil. These assets were purchased in 2004 by Russian businessman Alexander Dzhaparidze.

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