Weatherford International Ltd. (WFT) has finalized a deal to acquire the oilfield unit of BP PLC's (BP) Russian joint venture, TNK-BP Ltd. said Wednesday.
Oil-services company Weatherford, which has been looking for growth outside the U.S. amid a steep drop in demand, will gain foothold in the Russian market in a stock deal valued at $490 million.
The company will exchange 24.3 million shares for the business, which has operating bases in critical reserves including Western Siberia and the Volga-Urals region. The unit's revenues exceeded $650 million in 2008.
"Weatherford strengthens its position as a major provider of products and services in this important market, which will further improve the overall performance of Russia's oil field services," TNK-BP said in a statement.
TNK-BP, owned on a 50-50 basis by BP and a group of Russian businessmen, said it sold the business to allow it to focus on the core business of producing, refining and marketing crude oil.