Oilfield services giant
Weatherford International Ltd.
), in an attempt to streamline its international operations, has
announced the divestiture of its land drilling and workover assets
in Russia and Venezuela. These would be acquired by Rosneft. An
agreement was signed between Rosneft president Igor Sechin and vice
president of Weatherford for Russia, Lance Marklinger, in this
Per the agreement, the divestiture will include eight companies,
which are part of the Weatherford group, involved in drilling
operations in Russia and Venezuela. The agreement also includes
plans for the development of long-term cooperation in oil field
services between the two companies. The transaction is expected to
close in the third quarter of 2014.
In June, Weatherford relocated its legal domicile to Ireland from
Switzerland. The approval was passed at an Extraordinary General
Meeting of Shareholders at which over 98% of the shareholders voted
in favor of the proposal. The incorporation under the Irish law
will strengthen Weatherford's activities and facilitate operations
at the lowest possible cost. It will also boost the company's
ability to rapidly and efficiently progress on its transformational
path. The move will enable the company to retain and further
attract the finest personnel in the industry.
The company's strategy emphasizes on the expansion of its core
businesses and selling of its non-core assets. Weatherford's future
success rests on the successful execution of its planned
divestitures. The company would conduct its annual general meeting
in Sep 2014, as an Irish entity.
Weatherford is a leading oilfield services company. It manufactures
and provides equipment and services used in drilling, completion,
and production of oil and natural gas wells. The company's
operations are divided into four separate regions: North America,
Latin America, Europe/West Africa/CIS, and the Middle East/North
Africa/Asia. It has manufacturing facilities and sales, service and
distribution locations throughout the world.
Weatherford currently carries a Zacks Rank #3 (Hold). Some
better-ranked oil and gas stocks include
Kosmos Energy Ltd.
Matrix Service Company
BPZ Resources Inc.
). All these stocks sport a Zacks Rank #1 (Strong Buy).
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WEATHERFORD INT (WFT): Free Stock Analysis
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