Rosneft acquires Trican's oilfield service subsidiary

Russian oil giant Rosneft, through its group company, has acquired 100-per cent stake in a subsidiary of Trican Well Service Ltd, which provides high-quality pressure pumping services.

The Trican subsidiary provides high-quality pressure-pumping services focused on enhancement of production within the conventional oil and gas industry in Russia.

Roseneft said the acquisition has already received the necessary approval from the Federal Antimonopoly Service of the Russian Federation. The parties plan to close the transaction on 20 August 2015.

The two companies have signed a framework agreement and ancillary documents, according to a company press release.

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 which is faced with falling prices and a shrinking market amidst the sanctions imposed by the Western powers.

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, it added.

Trican Well Service Ltd. is an international oilfield service company headquartered in Calgary, Alberta, Canada. It. offers oilfield services in Russia through its subsidiary Trican Well Service LLC and in Kazakhstan through ??? "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), it added.

Rosneft is to shift its focus to increasing production at existing oilfields, its chief executive has said - in a tacit admission that weak oil prices and economic sanctions are thwarting ambitious plans for new projects.