TNK-BP Commits to Sell Oil Field Services Business to Weatherford International
TNK-BP today announced the sale of its Oil Field Services (OFS) enterprises to Weatherford International Ltd via a legally binding Sales and Purchase Agreement signed 29 May 2009.
The sale remains subject to approval from Russia's Federal Anti Monopoly Service.
TNK-BP will receive a consideration equal to 24.3 million shares of WFT common stock with the price floor that guarantees value over the next 12 months. The company will also have a priority option to retain Weatherford as a provider of drilling rigs and advanced technology. The deal will enhance the productivity of existing drilling and work-over services available to TNK-BP's exploration and production teams.
Completion of the sale of the OFS business to Weatherford underpins TNK-BP's strategic intent to focus on the core business of producing, refining and marketing oil and deliver better performance. It also helps to create more competitive markets and attract new globally competent service providers.
"This transaction with Weatherford allows us to drive further efficiency into our business in today's testing economic climate, and will give us access to the world's most technologically advanced rigs, drilling and work-over equipment and services. It will also secure jobs and boost investment in Russia's services sector generally," said Tim Summers, interim Chief Executive Officer of TNK-BP.
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