Seadrilland North Atlantic Drilling Ltd have agreed to an “investment and co-operation agreement”with the Russian oil major.
The tie-up will see the three companies “pursuegrowth opportunities” offshore and onshore in the Russian market until 2022.
Aspart of these proposed opportunities, NADL will enter the onshore drillingmarket in Russia and enter into contracts for multiple offshore assets.
Inaddition Rosneft will be acquiring a significant equity stake in NADL. However,no financial details were disclosed.
NADLhas already been contracted to drill the first two wells in the Kara Sea, as partof Rosneft and Exxon’s joint venture during 2014 and 2015.
“Aspart of the agreement, a number of long term contracts for NADL’s near-term availabilityare expected to be signed as well as a commitment to future contracts andnewbuild projects,” Seadrill said Monday.
“Theagreement envisions initial employment of up to nine offshore rigs to Rosneftwith a total commitment of 35 rig years..
Seadrillsaid the closing of the transaction is expected during the second half of 2014,subject to customary due diligence.
“Wehave sought to access the growth opportunity represented by the Russian marketfor several years,” said NADL chief executive Alf Ragnar Lovdal.
“TheRussian market is one of the most attractive opportunities in the world and offerstremendous growth potential for North Atlantic Drilling.”
NADL, in which Seadrill currently has a 70%stake, has a fleet of nine drilling units including five semi-submersibles, adrillship, and three jack-up rigs.
