An investment and cooperation agreement has been executed between North Atlantic Drilling Ltd. (NADL) and Rosneft to pursue growth opportunities offshore and onshore in the Russian market through at least 2022, NADL and Seadrill Ltd. announced in news release.
As part of these proposed opportunities, NADL will enter the onshore drilling market in Russia and enter contracts for multiple offshore assets. In addition, Rosneft will acquire a significant equity stake in NADL, the release said. NADL has already contracted to drill the first two wells in the Kara Sea, as part of Rosneft and Exxon's joint venture during 2014 and 2015.
As part of the agreement, 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 newbuild projects. The agreement envisions initial employment of up to nine offshore rigs to Rosneft with a total commitment of 35 rig years, according to the release.
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 as today and will focus on the current operations and future growth. The partnership is likely to entail opening other regional offices to serve local growth in demand, the release said.