Rosneft to buy Weatherford drilling units in Russia, Venezuela for $500M

|About: Rosneft Oil Company OJSC (RNFTF)|By:, SA News Editor

Rosneft (OTCMKTS:RNFTF) agrees to buy Weatherford International (NYSE:WFT) drilling and well-servicing assets in Russia and Venezuela for $500M, as Russia's top oil producer pushes to build its own drilling business to cut costs.

Russia needs to increase its drilling to maintain its current output of ~10.5M bbl/day over the next decade; WFT accounts for ~3% of the Russian oilfield services market by revenue.

The sale is part of WFT's plan to sell or split off as much as $1B in assets this year.