LONDON -(Dow Jones)- Oil services giant Schlumberger AS (SLBS.VI)
and London-listed Russian oil services firm Eurasian Drilling Co.
(EDCL.LN) said Tuesday they have completed a strategic
partnership deal that will see both firms buy some of each
other’s assets and cooperate in supplying oil and gas services
for five years.

The total value of the deal, announced in October, is $260
million, with a cash consideration of around $173 million from
EDC to Schlumberger, the companies said.

“This…alliance will further enhance our ability to improve
performance for our Russian and international customer base.
These additional rigs will strengthen our market position as well
as further diversify our client base in line with our development
strategy,” said EDC Chief Executive Alexander Djaparidze.

EDC was spun out of Russia’s second-largest oil producer, OAO
Lukoil (LKOH.RS), in a 2007 initial public offering.

-By Alexis Flynn, Dow Jones Newswires; +44 207842 9471, alexis.flynn@dowjones.com