Texas Lawyer Helps Eurasia Drilling in $17M Buy of LUKOIL Unit

October 01, 2004

MOSCOW – Haynes and Boone LLP partner Douglas Stinemetz who works from both Houston and Moscow, helped Eurasia Drilling Co. Ltd. finalize its $170 million purchase of the major oil and gas drilling assets of Russian energy giant LUKOIL Tuesday.

Eurasia Drilling Co. (EDC) will pay $130 million for LUKOIL drilling – or LUKOIL Bureniye – including the assumption of $60 million in debt.  EDC will also provide at least 6.5 million meters of drilling service to LUKOIL over the next five years and promises to invest $75 million to modernize the purchased unit across the same period of time.

The total value of Tuesday’s transaction hovers around $170 million, according to Stinemetz.  The acquisition is scheduled to close in December.

“We are pleased to be able to assist Eurasia Drilling Company in this important new acquisition,” Stinemetz said. “With LUKOIL Bureniye in hand, Eurasia Drilling Company is well on its way to becoming the preeminent drilling company in the Russian oilfield services industry."

LUKOIL announced its plans to sell the LUKOIL Bureniye unit in September as part of its plan to sell off non-oil assets.  The company also plans to divest its pipeline construction unit Lukoil-Neftegazstroi and Petrocommerce Bank units.

Haynes and Boone, LLP is an international law firm with nine offices throughout Texas, Washington, D.C., Mexico City and New York, providing a full spectrum of legal services to clients around the world. With more than 450 attorneys, Haynes and Boone is ranked among the largest law firms in the nation by National Law Journal.  According to Latin Lawyer, Haynes and Boone is “one of the top law firms worldwide practicing in Latin America and one of the most active and fastest-growing business law practices among U.S.-based firms in Mexico.”  The firm was recognized in the 2004-2005 edition of Chambers USA: America’s Leading Business Lawyers as being No. 1 in Texas and in the top eight in the United States for Insolvency and Corporate Bankruptcy work.  The firm has also been recognized as one of the “20 Best Law Firms to Work For” (Vault.com, 2004), one of the “Best Corporate Law Firms in America” (Corporate Board Member Magazine, 2001-2004) and recipient of the Minority Corporate Counsel Association’s 2002 Thomas L. Sager Award for commitment to diversity.

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