Rosneft, Seadrill Limited and its subsidiary North Atlantic Drilling Ltd. signed an Investment and Cooperation Agreement lasting until at least 2022 at the 18th St. Petersburg International Economic Forum. The signing ceremony was led by Vladimir Putin, the President of Russian Federation.
The agreement envisages Rosneft acquiring a significant stake in North Atlantic Drilling Ltd., with the latter entering Russia’s onshore drilling market, and signing of long-term contracts for onshore and offshore drilling.
The parties also signed a letter of award for 6 harsh environment offshore drilling rigs. The agreement proposes the use of up to 9 offshore drilling rigs.
As reported by Reuters citing Rosneft’s President Igor Sechin, Rosneft could buy a controlling stake in Norway’s Seadrill over time as the company is interested in taking up to 50 percent stake in Seadrill.
“Participation in a leading company that specializes in harsh environment drilling operations is an important step in the journey to develop Russia’s Arctic shelf.
Signing large-scale, long-term contracts will enable Rosneft to secure what’s needed to develop offshore projects in parallel with implementing the onshore drilling costs optimization program.
I am confident that very soon we will see a significant positive effect on drilling operations both in on- and offshore projects,” said Igor Sechin, the President of Rosneft and Chairman of Rosneft’s Management Board.
Alf Ragnar Lovdal, the Chief Executive Officer of North Atlantic Drilling, 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 which produces over 5 million barrels per day, we set out to create a powerful force in the Russian market and for Arctic regions on a global basis. ”
Rosneft, May 25, 2014