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Norway,Russian Federation : NORWAYS NADL signs contract with RUSSIA'S ROSNEFT.

The Norwegian company, North Atlantic Drilling Limited (NADL) signed contracts with Russia s Rosneft during the summer period, hoping to continue doing business with Rosneft and other Russian companies, despite the possibility of the imposition of new sanctions against Russia by the West, NADL s CEO Alf Ragnar Lovdal.

I hope we can work closely with them for many years and I hope we can expand that business with them and others because I believe there is a big future in the Arctic. There are a lot of wells to be drilled in the coming years, Lovdal said.

The $4.6 billion deal includes the acquisition of 30% of NADL s shares by Rosneft through an exchange of assets and investments, with the option for the Russian company to increase its stake in Norwegian firm.

The agreement allows Rosneft to acquire a fleet of offshore platforms, including 6 offshore rigs to drill for oil up until 2022.

The $4.25 billion contract was signed just days before August 1, when the European Union imposed a ban on the export of technology to used in Arctic exploration, unjustifiably blaming Russia in meddling with Ukraine s internal affairs.

A deal worth $4.6 billion is the biggest contract that NADL signed and it is crucial for the company with a market capitalization of $2.6 billion.

NADL is a leading drilling company with extensive experience of working in harsh climate conditions. About 70.4% of its shares belong to Seadrill, the world s largest rig operator.

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Publication:Mena Report
Geographic Code:4EXRU
Date:Sep 2, 2014
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