The US Department of the Treasury has taken action by imposing blocking sanctions on Eurasia Drilling Company LLC, according to an official statement from the Office of Foreign Assets Control (OFAC).
Several other equipment manufacturers and service providers in the oil and gas industry were included in a significant update to the Russian segment of the Specially Designated Nationals (SDN) List. These entities comprise PKF-GazNefteMash, Tyumen Oil Research Center, Neftegazavtomatika, and more.
Eurasia Drilling Company, originally established in the mid-1990s based on LUKOIL’s production assets and initially known as LUKOIL-Burenie, underwent a name change in 2004. It was acquired by Eurasia Drilling, which was under the control of Alexander Dzhaparidze and his partners. In 2007, the company underwent an IPO but later returned to private ownership after its shares were repurchased from the market. An attempt by Schlumberger to acquire the company faced challenges in coordinating the deal with Russian authorities.
In May 2022, a notable change in ownership was announced for Eurasia Drilling Company. It was taken over by OOO Drilling Company Razvitie, whose owners have close ties to LUKOIL.
The imposition of sanctions underscores the US government’s actions in response to activities deemed as non-compliant with international norms and regulations. This move aims to exert economic pressure on the targeted entities and individuals, seeking to influence their conduct within the global oil and gas industry.
