Eurasia Drilling Extends Deadline For Schlumberger Deal

(RTTNews) - Russia-based Eurasia Drilling Co Ltd (EDCL.L) on Monday said it has extended the deadline of a deal to sell a stake to Schlumberger Ltd (SLB) to April 30 from the end of March.

In January, Schlumberger agreed to buy a 45.65% minority stake in EDC for $22 per share. The total cost of acquiring the stake, including the cost of a call option and various non-competition agreements, is about $1.7 billion.

Schlumberger also has an option to buy the rest of the Russian company at a later date.

Russian anti-monoply officials are concerned EDC's businesses could be hurt if the U.S.-led sanctions against Russia over the Ukranian crisis are extended. EDC said it along with Schlumberger is cooperating with the Russian Federal Anti-Monopoly Service. The deal will be terminated if conditions aren't met by then.

EDC operates the largest fleet of onshore drill rigs in Russia and is vital to operations at the country's conventional oil fields.

EDC is listed on the London Stock Exchange. Upon completion of the deal with Schlumberger, EDC's global depository receipts in London will be delisted.