Eurasia Drilling Company Limited (Eurasia) and Schlumberger have announced that they have signed a Letter of Intent to sell and purchase each other’s drilling and service assets, while entering a strategic alliance in the CIS.
Schlumberger has agreed to sell all drilling, sidetrack and workover rigs currently operating mainly in West Siberia to Eurasia. As part of the sale, the rigs’ crews will transfer to Eurasia. Schlumberger has also agreed to purchase the Eurasia drilling services businesses, which include the directional drilling, measurement while drilling, cementing, and drilling fluids services to support 80 rigs. The field crews to support delivery of these services will move to Schlumberger. In addition, Schlumberger and Eurasia have agreed to enter a strategic alliance upon completion of the transaction whereby Schlumberger becomes the preferred supplier of drilling services to Eurasia Drilling for up to 200 rigs for a five year period.