Schlumberger is to acquire Russian service company PetroAlliance over the next two years. Schlumberger will acquire 26% of the company now with a further 25% in 2005, and the remainder in 2006. PetroAlliance was established in 1995 and covers seismic, logging and perforating, directional drilling, pumping, integrated project management, and IT-related services. PetroAlliance serves both Russian and international oil and gas operators.
Schlumberger chairman and CEO Andrew Gould said, “Advances in oilfield service practices and technologies have already played significant roles in Russia. Making new technology available through broader service options responds to a growing need and expresses our confidence in the continuing development of the Russian oil and gas industry.”
PetroAlliance chairman and CEO Alexander Djaparidze added, “We believe this agreement with Schlumberger offers a significant opportunity for the continued growth of our activity and gives us access to the best oilfield services technology on the market. PetroAlliance is positioned to become the leading player in provision of cutting-edge oilfield technology in Russia.”
PetroAlliance, Russia’s largest independent oilfield service company, was founded in 1995 and employs 2,500. Operating revenues for 2002 were $112 million. Completion of each stage of the deal is subject to performance standards and other customary conditions. The total acquisition price will be determined by a performance-based formula, and paid one-third in cash and two-thirds in Schlumberger stock.
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