Eurasia Drilling, C.A.T. Seen Gaining From Russia Oil InvestmentStephen Bierman
Eurasia Drilling Ltd. and C.A.T. Oil AG, 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 continue reading this article you must be a Bloomberg Professional Service Subscriber.
If you believe that you may have received this message in error please let us know.
- Stocks Drop Most in Six Weeks on Trade War Tension: Markets Wrap
- Comedian Byron Allen Buys the Weather Channel for $300 Million
- YouTube Bans Firearms Demo Videos, Entering the Gun Control Debate
- China Hits Back on Trump Tariffs as Europe Off the Hook for Now
- Bitcoin Falls on Fears of Regulatory Trouble for Big Crypto Exchange