September 17, 2008
TOT Energy, SIBBNS Form Joint Venture Company in Russia
US-based oilfield services company TOT Energy and Russian oil exploration and drilling company SIBBNS have formed a joint venture company, TOTSIBBNS, to compete in Russia's oil services sector, a $10 billion market that is expected to grow 10% annually over the next two years.
TOT Energy holds a 75% stake in the new private company, with the remaining 25% controlled by SIBBNS. TOT-SIBBNS has absorbed all of SIBBNS's assets, including oil drilling equipment and 190 oil field specialists.TOT-SIBBNS's expertise includes exploration and development well drilling and other oilfield services specifically in western Siberia. The new company intends to expand into other oil producing areas in Russia.
Alexander Medvedev, a 35-year veteran of Russia's oil exploration industry who oversaw operations at SIBBNS has assumed the position of president of TOT-SIBBNS and vice president of Russian operations for TOT Energy.
Mike Zoi, CEO of TOT Energy, said: "SIBBNS is a recognized leader in their market category with a strong track record. The new joint venture company enables us to capitalize on the opportunities in Russia's oil service industry, a market expected to reach $12 billion by 2010."