Seadrill, North Atlantic Drilling partner with Rosneft to access Russian market

Posted on 27 May 2014

North Atlantic Drilling Ltd (NADL) and Seadrill have executed an investment and cooperation agreement with Rosneft to pursue growth opportunities offshore and onshore in the Russian market through at least 2022. As part of these proposed opportunities, NADL will enter the onshore drilling market in Russia and enter into contracts for multiple offshore assets. In addition, Rosneft will acquire a significant equity stake in NADL.

NADL has already been contracted to drill the first two wells in the Kara Sea, as part of Rosneft and ExxonMobil’s joint venture during 2014 and 2015.

As part of the agreement, several long-term contracts for NADL’s near-term availability are expected to be signed, as well as a commitment for future contracts and newbuild projects. The agreement envisions initial employment of up to nine offshore rigs to Rosneft, with a total commitment of 35 rig years.

Closing of the transaction is expected during the second half of 2014, subject to customary due diligence, negotiation of detailed transaction terms and respective board approvals.
The company’s operations in Stavanger will continue and will focus on the current operations and future growth. The strategic partnership is likely to entail the establishment of other regional offices to serve local growth. Overall activity levels are expected to increase significantly and provide employees with attractive opportunities, according to Seadrill.

Seadrill, after the initial transaction, will remain the largest shareholder in NADL. Alf Ragnar Lovdal, NADL CEO, 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 5 million 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”

NADL is an offshore harsh-environment drilling company with focus on the North Atlantic basin. The company has nine drilling units in the fleet, including five semisubmersibles, a drillship and three jackups. Seadrill currently owns 70% of the outstanding shares.

Leave a Reply

*

FEATURED MICROSITES


Recent Drilling News

  • 26 November 2014

    US EIA: Increase in energy demand requires 33 million bbl/day more oil

    The world is going to need one-third more oil between 2010 and 2040, with developing countries, such as China and India, accounting for a major portion in the increase in...

  • 25 November 2014

    Prescriptive Analytics prescribes how to complete wells to maximize production

    "Big data" is taking on a new role in industry, where companies are combining the findings from geology and geophysics with new data collected from advanced technologies...

  • 25 November 2014

    Petrobras completes drilling first appraisal well in Libra Consortium

    Petrobras recently completed drilling the first appraisal well in the Libra area, the 3-BRSA-1255 (3-RJS-731), known as NW1. Located in the Northwest portion of the Libra block, in the pre-salt layer of the...

  • 24 November 2014

    Ensign secures contracts for 2 ADR 1500S pad drill rigs in Montney area

    Ensign Energy Services has signed contracts for two of its new ADR 1500S pad drill rigs for a major operator in the Montney area of northeast British Columbia...

  • 21 November 2014

    Statoil cancels Stena Carron rig contract offshore Angola

    Statoil has decided to cancel the Stena Carron rig contract after fulfilling the work commitments in the Statoil-operated blocks 38 and 39 in the Kwanza basin offshore Angola...

  • Read more news