ROSNEFT BUYS MULTI-FRACKING
A company of the Rosneft Group and a subsidiary of Trican Well Service Ltd. signed a framework agreement and ancillary documents, pursuant to which a Rosneft subsidiary agreed to acquire a 100% shareholding in Trican Well Service LLC, which provides high-quality pressure pumping services focused on enhancement of production within the conventional oil and gas industry in Russia. The purchaser has already obtained the necessary approval of the Federal Antimonopoly Service of the Russian Federation. The parties plan to close the transaction on August 20, 2015.
The implementation of the signed agreements will allow Rosneft to increase economical and production efficiency in the area oil recovery increase, downhole operations and wells' cementing. Increasing efficiency of its core-business is a key priority for Rosneft, outlined in its long-term development program. The implementation of this strategy will allow the Company to maintain record-low operational costs leadership between leading oil and gas companies.
Moreover the reached agreements will allow Rosneft to boost its expertise in the oilfield service area, due to access to high-quality expertise in the area of production stimulation, well completion and downhole operations on conventional oilfields.
Trican Well Service Ltd. is an international oilfield service company headquartered in Calgary, province of Alberta, Canada. Trican Well Service Ltd. offered oilfield services in Russia through its subsidiary Trican Well Service LLC and in Kazakhstan through ТОО "Trican Well Service Kazakhstan Limited".
Rosneft plans to actively develop in-house production stimulation service on the basis of the acquisition of Trican Well Service LLC asset, which will lead to a significant increase of financial transparency and contracting of drilling services. A significant constituent of the implementation of this strategy is the in-house production capabilities expansion (in the area of fracturing, coil tubing and well cementing).