Schlumberger to pay $1.7 billion for minority stake in Russian oilfield services company

MarketsAssociated Press

Schlumberger will spend about $1.7 billion for a minority stake in a big Russian energy company at a time when the country's relations with the West are under strain and as energy prices hit multiyear lows.

Schlumberger said last week that it would cut 9,000 jobs in response to falling oil prices

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The world's largest oilfield services company will pay about $22 per share to acquire a 45.6 percent stake in Eurasia Drilling Co., which will go private and delist from the London Stock Exchange.

Eurasia provides onshore drilling services in Russia and offshore services in the Caspian Sea. It also works in Iraq.

The deal announced Tuesday gives Schlumberger Ltd. a window to purchase the rest of the company at a later date.