Kommersant learned about plans to leave US oilfield services companies from Russia

According to newspaper sources, the largest US oilfield services companies, including Baker Hughes, Schlumberger and Halliburton,terminate contracts with Russian companies and plan to sell the business to local management

The largest US oilfield service companies operating in RUSSIA are terminating existing contracts and are looking for ways to exit the Russian market. This was reported by Kommersant with reference to sources in the market.

According to the sources of the newspaper, the American Baker Hughes terminated all contracts, and Halliburton transferred the property of the Russian branch to a new legal entity, which is then going to be sold to local management. Schlumberger, which has the largest presence in Russia, may consider a similar scenario.

Baker Hughes, according to the newspaper, terminated all existing contracts with its Russian counterparts, agreeing to pay fines for non-performance. The company told Kommersant that "in accordance with EU requirements that came into force on May 15, the company has limited its activities with certain Russian customers."

According to Vygon Consulting, Schlumberger occupies about 8% of the Russian oilfield services market, Halliburton and Baker Hughes - 2% each. At the same time, Schlumberger in Russia accounted for an average of 5% of global revenue in 2020-2021, Halliburton - 2-3%, Baker Hughes - 2%.

From May 15, EU-registered companies are prohibited from directly or indirectly making any transactions with Rosneft and Gazprom Neft, as well as with persons who own more than 50% of the companies or act on behalf of or at the direction of the companies (blocking sanctions ), explained Daria Zakabunya, lawyer at the Vegas Lex Special Projects Group.

The Fifth Oilfield Service Company Suspended Investments in Russia Business

On March 15, the EU imposed sanctions against Rosneft, Gazprom Neft and Rostec, banning all deals and transactions in the jurisdiction of the European Union. The EU explained this by the fact that all listed companies are controlled by the state.

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The first large oilfield services company to announce the curtailment of work in Russia was the American company Halliburton. She linked this decision with the sanctions against Russia. The company produces equipment for drilling wells and is engaged in the maintenance of pipelines and tank farms, as well as the development of it solutions for the oil and gas industry.

Then the oilfield service companies Baker Hughes, Weatherford International and the largest Schlumberger refused to invest in Russian projects. In Russia, Schlumberger cooperated with 2.5 thousand companies - suppliers of goods and services in the field of energy and served 150 objects "in all oil and gas producing regions of Russia and Central Asia." 11.5 thousand Russians work for the company.

Switzerland's Weatherford operates in the energy sector in 75 countries and provides solutions to optimize and improve safety in oil and gas production. It employs about 17 thousand people. Owns 350 production sites, including research and development, service and training centers.

Baker Hughes operates in more than 120 countries around the world, delivering equipment to the oil and gas industry - gas and steam turbines, turbomachines, etc., as well as developing software and providing cybersecurity services.