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Issue with Schlumberger-EDC deal is political — EDC representative

August 20, 2015, 19:47 UTC+3 MOSCOW
The Head of Marketing and Investor Relations of EDC said there was no change in the agreement between EDC and Schlumberger
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© ITAR-TASS/Denis Kozhevnikov

MOSCOW, August 20. /TASS/. The issue with the purchase of shares of Eurasia Drilling Company (EDC) by US Schlumberger is political, Tom O'Gallagher, vice president, head of marketing and investor relations of EDC told a phone conference on Thursday.

"If we knew what the issues were we would be able to fix them. But we don’t know what the concerns are. So it is rather more political than practical thing," he said.

The Head of Marketing and Investor Relations of EDC said there was no change in the agreement between EDC and Schlumberger.

"The deal is still good for all parties and there’s been no change in terms at the stage." he said.

The deal on acquisition of 46% in the Russia’s oilfield service provider Eurasia Drilling Company (EDC) by Schlumberger is still waiting for approval by the antimonopoly service and the Commission on Foreign Investments.

TASS reported earlier the deadline for completion of the deal was extended until September 30. EDC continues negotiating the transaction with the Russian Federal Antimonopoly Service and the government Commission on Foreign Investments.

On January 20 it was announced that US-based Schlumberger, the world’s largest oil services company, is acquiring Eurasia Drilling, oilfield Service Company, despite anti-Russia sanctions and falling oil prices. The merger company can capture up to 50% of the Russian market. Sanctions should not intervene - Eurasia Drilling specializes in traditional technologies, which are not subject to sanctions.

The deal on Eurasia Drilling takeover by Schlumberger will amount to $1.7 bln. Schlumberger will purchase 45.65% of shares in the Russian company. Eurasia Drilling will undergo de-listing on the London Stock Exchange and buy out its shares from minority stockholders. Schlumberger will extend a loan for the shares redemption to the majority shareholders of the Russian company.

The largest co-owners of Eurasia Drilling are Alexander Dzhaparidze with a 30.2% stake (he is also the general director) and Alexander Putilov with 22.4%.

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