OAO Rosneft, Seadrill Ltd., and North Atlantic Drilling Ltd. (NAD) have signed a framework agreement under which NAD will acquire about 150 land drilling rigs from Rosneft as well as 5-year contracts for the rigs. The transaction is expected to close in this year’s fourth quarter.
In exchange for the rigs, Rosneft would gain a 30% stake in NAD at $9.25/primary share. Seadrill, currently holding 70% of NAD’s outstanding shares, would continue to own more than 50%.
Rosneft would be entitled to appoint two of seven NAD board members.
Rosneft Pres. Igor Sechin said the company will “strengthen its positions on the market of high-technology oil field services alongside with the world’s sector leaders.”
NAD has five semisubmersibles, a drillship, and three jack ups. In July, NAD and Rosneft signed long-term offshore drilling contracts for six rigs.
A joint venture of Rosneft and ExxonMobil Corp. is drilling an exploratory well in the Kara Sea using the West Alpha semisubmersible owned by NAD (OGJ Online, Aug. 11, 2014).