Talks of US companies on oil, gas assets suspended in Azerbaijan

Economy Materials 8 October 2015 17:50 (UTC +04:00)

Baku, Azerbaijan, Oct. 8

By Maksim Tsurkov - Trend:

General Electric Oil & Gas and the US service companies Halliburton and Baker Hughes have suspended negotiations on a deal on the oil and gas assets in Azerbaijan, a source on the oil and gas market of Azerbaijan told Trend Oct.7.

The source said that the reason for the suspension of talks on the deal is unknown and is not disclosed by the companies.

"Following the merger of Halliburton and Baker Hughes, it was decided to sell a part of services and equipment, including the ones in Azerbaijan," said the source. "The oil and gas division of General Electric [GE Oil & Gas] got interested in the acquisition of these assets in Azerbaijan, in particular, such equipment as liner hangers and service work. The parties were holding talks, but they are currently suspended."

The source went on to add that however, GE Oil & Gas continues its work to expand activity in Azerbaijan.

The second and third largest global oilfield services giants, Halliburton and Baker Hughes, agreed to an asset swap in November 2014. The transaction worth $34.6 billion became the largest one in the oil and gas sector. Earlier, the European Commission suspended the consideration of the merger deal of the Halliburton and Baker Hughes US oilfield services companies due to the fact that they didn't provide sufficient information.

GE Oil & Gas has more than 12,000 employees worldwide and provides services to customers in more than 100 countries of the world.

Edited by CN


Follow the author on Twitter: @MaksimTsurkov