NY Gov. Cuomo Says MTA Systemwide Service Expected This Morning

Eurasia Drilling, C.A.T. Seen Gaining From Russia Oil Investment

Eurasia Drilling Ltd. and C.A.T. Oil AG (O2C), oil-service providers in Russia, are set to gain from an increase in investment by the country’s biggest crude producers, Renaissance Capital said as it resumed coverage of the industry.

“We view oilfield-services companies as the best exposure to rising capex,” Ildar Davletshin and Artem Kvas, analysts at Renaissance in Moscow, wrote today in a research note. “The era of cheap conventional oil in Russia is over.”

Oil producers are spending more to tap hard-to-recover reserves as traditional fields become depleted. Russia has proposed rebates on such resources to stimulate drilling, and cut crude export taxes in 2011 to maintain its world-leading output at more than 10 million barrels a day.

Meters drilled in Russia will increase at least 40 percent by 2020 from 2012, benefiting Eurasia and C.A.T. Oil, Renaissance said. The brokerage set a price estimate for Eurasia of $45 per global depositary receipt and rated it a buy. C.A.T. Oil has a price estimate of 12 euros a share and a buy rating.

To contact the reporter on this story: Stephen Bierman in Moscow at

To contact the editor responsible for this story: Will Kennedy at

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.