FAS leaves out veto rights in list of conditions for Schlumberger, EDC deal
MOSCOW. April 6 (Interfax) - Russia's Federal Antimonopoly Service (FAS) has denied that the terms for approving a deal between Schlumberger and Eurasia Drilling include a point about the government receiving a "golden share" in EDC.
"Russia's FAS does not confirm that in the deal for Schlumberger to acquire shares in Eurasia Drilling there was any sort of decision on a 'golden share,'" the FAS press service told Interfax.
The FAS said this condition was not on a list of obligations that might be required of the foreign investor and that that FAS is drafting on orders by Russian Prime Minister Dmitry Medvedev.
The Kommersant newspaper said the Russian government had come up with a way to control EDC if the country's leading oilfield services company is sold to Schlumberger. One of the conditions set by the commission reviewing the $1.7 billion deal is that the state be given a 'golden share' in EDC. This condition could further drag out negotiations, but industry analysts believe Schlumberger will ultimately agree, the paper said.
The FAS is due to discuss the terms of the deal on Monday.
Schlumberger has reached agreement to purchase 46% of EDC shares, with an option to increase its stake to 100%.
The deadline for Schlumberger to acquire the initial 46% was put back from the end of the first quarter until April 30, 2015 after the FAS took an interest in it.
The FAS referred the deal to the government's foreign investment commission for approval. The commission agreed to the deal provided Schlumberger undertook certain commitments, among them to return the stake on EDC to the Russian investors in the event sanctions against Russia are stepped up. In that event, Schlumberger would have to honor the law on state secrecy and appoint a Russian citizen to a management position.
Representatives of the FAS and Schlumberger approved the list last week. It was mentioned at the time that the parties were still examining the conditions and were expected to given them final approval in two or three days, FAS chief Igor Artemiyev told reporters on April 3.