Western oilfield service firms look to exit Russia amid sanctions -Kommersant

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Western oilfield service companies are looking to exit Russia due to sanctions imposed on Russia, including EU sanctions against Rosneft ROSN.MM and Gazprom Neft, the Kommersant newspaper reported on Wednesday.

Since May 15, Baker Hughes BKR.N has terminated all its contracts, including service contracts, with sanctioned Russian companies, and has agreed to pay fines for failing to fulfil them, Kommersant reported, citing industry sources.

U.S. firm Halliburton HAL.N, which said in March that it was winding down its business in Russia, has transferred its local branch to a new legal entity, which will then be sold to local management, Kommersant reported, citing sources. 

Schlumberger SLB.N is also considering transferring its business to Russian management, Kommersant reported. Russia represents roughly 5% of Schlumberger’s revenue, the company said in April.

Photo – An oil field in the Surgut region in Siberia, Russia. EPA/EFE

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