Russian regulator requests more info on Schlumberger, Eurasia Drilling deal
MOSCOW. March 5 (Interfax) - The Russian Federal Antimonopoly Service (FAS) has requested additional paperwork on a deal between Schlumberger and Eurasia Drilling, the regulator's deputy head, Andrei Tsyganov, told reporters.
"There are two details: the structure of the transaction as a whole, because it is in two stages, and we need to understand whether these stages are inter-connected or entirely separate, and whether different legal consequences arise from each or them or not - consequences from the point of view of international law. And the second is a final explanation of whether or not the deal requires approval as per the law on foreign investment," he said.
"These two issues re inter-related, and as soon as we resolve them we will have our final word," he said.
Tsyganov said the FAS had already sent the request for further information to Schlumberger and was waiting for its reply. The company has not, for example, submitted any documents regarding the Law No. 57 on the procedure for foreign investment in strategic companies because it was convinced the planned deal did not need approval in keeping with the foreign investment law, he said.
"But we are not convinced," he said. Further information is needed to resolve this issue. As for when the issue is resolved, this will depend when the paperwork is submitted, he said.
Schlumberger earlier reached agreement to purchase shares in Eurasia Drilling in a deal to be conducted in several stages. Eurasia Drilling will first delist from the London Stock Exchange (this was scheduled to occur on February 23) and purchase stakes from minority shareholders, after which Schlumberger would increase its stake in Eurasia Drilling to 46%, with the option to subsequently increase that stake to 100%. Eurasia Drilling shareholders approved the deal on February 16 pending a decision from the FAS.
The FAS is interested in the deal and sent Schlumberger a request to present detailed information on the parameters of the upcoming purchase. The regulator said from the outset that it would decide this week whether or not Schlumberger needed to clear the deal with the regulator.