North Atlantic Drilling (NADL) and Seadrill Limited have finalised an investment and co-operation agreement with Rosneft in a bid to capitalise on Russia’s onshore and offshore markets.
As part of the agreement Rosneft will acquire a “significant stake” in NADL. However, Seadrill will retain its position as NADL’s largest shareholder.
The strategic move perfectly poises NADL in the harsh drilling environment, according to NADL’s board.
NADL chief executive Alf Ragnar Lovdal said the deal was the Russian break the company was after.
He said: “We have sought to access the growth opportunity represented by the Russian market for several years, and we are very pleased to have reached an agreement with Rosneft for this landmark transaction.
“The Russian market is one of the most attractive opportunities in the world and offers tremendous growth potential for North Atlantic Drilling.
“By partnering best in class drilling with a supermajor who produces over 5m barrels per day, we, after closing of this transaction, will have created a powerful force in the Russian market and for Arctic regions on a global basis. We look forward to closing this important transaction and working with Rosneft for many years to come.”
Under the terms a number of long term contracts for NADL’s near-term availability are expected to be signed as well as a commitment to future contracts and new build projects. It is thought initial deployment will include up to nine offshore rigs to Rosneft with a total commitment of 35 rig years.
