Rosneft buys Weatherford Intl oil service assets

Rosneft has signed an agreement on the purchase of drilling and well repair assets of Weatherford International Plc in Russia and Venezuela, a report of the Russian oil company says.

Rosneft has signed an agreement on the purchase of drilling and well repair assets of Weatherford International Plc in Russia and Venezuela, a report of the Russian oil company says.

The agreement stipulates for the acquisition of eight companies belonging to Weatherford group and engaged in drilling and well repair in Russia and Venezuela. It also implies the development of cooperation in oil services on a long-term basis.

The deal will be closed after receiving all due corporate approvals and permits from regulators. This is expected to happen in Q3 2014. The sum of the deal was not disclosed.

Rosneft says that the implementation of the deal will promote the strengthening of the company's positions on the market of drilling services as well as running repairs and overhaul of wells and expand the range of contractors in maintenance services which will help increase the effectiveness of drilling and extraction and improve financial indicators. The deal complies with the company strategy of developing its own maintenance services.

Meanwhile, for Weatherford the deal is a step to the IPO of its service business planned for 2015.

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