Fredriksen’s new drilling company receives nod for Oslo listing

October 25, 2017

Northern Drilling, a recently established offshore drilling company, has received an approval to begin trading in Oslo.

At meeting on Tuesday, October 24 the Board of Oslo Børs resolved to admit the shares in Northern Drilling Ltd. to listing on Oslo Axess.

Northern Drilling is an offshore drilling contractor formed by a Norwegian-born billionaire and drilling and shipping magnate John Fredriksen in March 2017 targeting distressed drilling rig acquisitions.

The company currently owns one semi-submersible rig and has an option to acquire another similar rig – the Bollsta Dolphin.

Fredriksen, whose net worth has been estimated to more that $10 billion in 2017, through Northern Drilling bought the West Mira rig from Hyundai Heavy Industries after Seadrill had canceled the contract due to the yard’s inability to deliver the rig on time.

According to available information, Northern Drilling also has an option to buy the Bollsta Dolphin rig. The original client for the rig, Fred. Olsen Energy, canceled the order as a result of the delays in delivery date.

Northern drilling is looking at offshore drilling rigs for operations in both benign and harsh environments worldwide, including ultra-deep water environments.

Apart from Northern Drilling, Fredriksen, according to Bloomberg, owns stake ins Frontline, Golar, Marine Harvest, and Seadrill, an offshore drilling company that entered bankruptcy protection in September 2017.

Listing imminent

As for the listing date, the Chief Executive Officer of Oslo Børs is authorized to determine the date of the first day of listing, which is to be no later than 8 December 2017.

Listing on Oslo Børs represents a full stock exchange listing that complies with all EU requirements, while listing on Oslo Axess, where Northern Drilling will trade, gives companies access to an authorized and fully regulated marketplace.

According to a definition found on the Oslo stock exchange website, Oslo Børs is the obvious choice for larger companies that have an established track record and a wide distribution of shareholders, while Oslo Axess is suitable for companies that have less than three years’ history but seek the quality stamp and other benefits associated with listing on a regulated marketplace.