Rosneft and North Atlantic Drilling sign Exchange of Assets Agreement
Rosneft, Seadrill Limited and North Atlantic Drilling Limited (NADL) signed a Framework Agreement that envisages long-term cooperation in the sphere of oilfield development projects, Rosneft says in its press release. The document foresees the acquisition by Rosneft of NADL shares through an exchange of assets and investments in NADL charter capital. Moreover agreement’s options contemplate a possibility for Rosneft to increase its stake in NADL according to the development of the cooperation.
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 cooperation will expand the field of activities of the Company in the sphere of designing and engineering of specialized marine equipment.
The final parameters of the deal, including the amount of Rosneft’s cash contribution in NADL’s charter capital, will be defined upon receiving corporate and accountant’s approvals which is expected till the end of the 2014.
Commenting on the signing Rosneft President Igor Sechin said “Rosneft, Seadrill and NADL are creating a unique international partnership which will allow Rosneft to secure its drilling program. This deal will allow Rosneft to acquire new capabilities in the sphere of oilfield services, by engaging the best professionals, with unique expertise in operations in harsh climate conditions. The Company will notably strengthen its positions on the market of high-technology oilfield services alongside with world’s sector leaders. It is also important to notice that a significant increase in the price of NADL shares, recorded after the arranging of the fundamental settlement on May, 24 2014, confirms the profitableness of the partnership both for Seadrill and NADL and for our Company”.
Alf Ragnar Lovdal, Chief Executive Officer of NADL says in a comment, "We are very pleased with the execution of this important transaction and welcome Rosneft as an equity partner and to our Board of Directors.”
North Atlantic Drilling Ltd. is a leading drilling company, specialized in operations in harsh climate conditions. NADL shares are listed on the NYSE and Norwegian OTC with a market capitalization of approximately USD 2.4 bln. Seadrill Ltd. currently owns approximately 70.4% of NADL shares.
In July 2014 Rosneft and NADL have entered into long-term offshore drilling contracts. The transaction contemplates employment of six offshore drilling rigs until 2022 with the purpose of carrying out Rosneft offshore projects, including harsh environment.
Currently one of NADL’s semi-submersible rigs - West Alpha is involved in project of drilling at Universitetskaya-1 Russia’s northernmost well. A project carried out by Rosneft and ExxonMobil.
