Rosneft Signs Deal to Acquire 30% of North Atlantic Drilling

Rosneft keeps strengthening its ties with Western companies, signing a Framework Agreement for long-term co-operation with Seadrill Limited and offshore harsh environment drilling company North Atlantic Drilling (NADL). The Russian company will acquire a minority share in NADL. It will also be entitled to appoint two of seven Board seats of the company.

‘The deal is implemented within the Rosneft’s strategy aimed at strengthening and expanding its service business potential, increasing its technological capabilities and will allow the company to acquire a fleet of platforms and drilling rigs for the conduction of on and offshore drilling operations,’ the company wrote on its website on Friday.

According to the note, the agreement will allow Rosneft to increase its know-how in the fields of designing and engineering of specialised marine equipment.

‘Rosneft, Seadrill and NADL are creating a unique international partnership which will allow Rosneft to secure its drilling program,’ Rosneft President Igor Sechin commented. 

Contextually, North Atlantic Drilling will also purchase a portion of Rosneft’s land drilling fleeting in Russia, amounting to 150 rigs. 

‘Rosneft will receive as consideration an approximate 30% stake in NADL by receiving primary shares at the price agreed upon in May of US$9.25 per share, with the balance being paid to NADL in cash. Following the transaction Seadrill Limited will continue to own more than 50% of NADL,’ reads a statement made by North Atlantic Drilling. 

The binding agreement is expected to close by the end of the year. At the moment, Seadrill Limited owns 70% of NADL.