Schlumberger Remains Firm on Deadline for Acquisition of Russia’s Eurasia

US-headquartered Schlumberger said on Thursday that it will not extend its Wednesday deadline for Moscow to approve its $1.7 billion offer for a stake in Eurasia Drilling Co.

‘Schlumberger Limited announced today that it does not intend to extend the pending agreement to acquire a minority equity interest in Eurasia Drilling Company Limited, once the current extension expires on September 30, 2015. The Company will instead focus on other M&A opportunities’ reads a note released by the American company.  

In case Russian officials give the green light by Wednesday, Schlumberger would acquire a 45% in Russia’s largest onshore drilling firm, with an option to buy the rest of the company at a later date.

The Wall Street Journal wrote that the announcement ‘ratchet up pressure on Russia’s antitrust officials’. An alternative reading is that Schlumberger changed its mind, or it never really wanted to conclude the transaction. 

It remains unclear whether the latest developments have to do with the relations between Moscow, Brussels, Kiev and Washington.

Reuters reported on Friday that Russia's Prime Minister Dmitry Medvedev signed a decree on Thursday to set the gas price for Ukraine. Despite some confusion, it looks like the parties are meeting in Brussels on Friday.