NADL sends rig fleet to Russian waters in $4B deal

North Atlantic Drilling Ltd. has announced that 6 binding offshore contracts have been executed with Rosneft Oil Company (“Rosneft”).

The total revenue potential for the six contracts exclusive of mobilization is approximately US$4.25 billion. According to the agreement, any break rights expire after 100 days.

The executed contracts include 5 year contracts for the West Navigator, the West Rigel, the West Alpha semi-submersibles, two newbuild CJ-54 class rigs, and a 2.5 year contract for a Gusto class Jack-up rig.

These contracts start in Russian waters from 2015 through 2017. These binding contracts are consistent with the provisions of the Investment and Cooperation Agreement between Seadrill, NADL and Rosneft announced on May 24, 2014.

Alf Ragnar Lovdal, Chief Executive Officer of NADL says in a comment, “We are very pleased with the execution of these contracts, which is in line with the timetable agreed earlier this year. Our partner Rosneft has shown remarkable cooperation at every stage throughout this process. This milestone is testament to the ability of both NADL and Rosneft’s employees and we hope that further transactions can be concluded in a similar manner.”

NADL is an offshore harsh environment drilling company with focus on the North Atlantic basin. The company has nine drilling units in the fleet, including five semi-submersibles, a drillship, and three jack-up rigs. Seadrill Limited currently owns 70% of the outstanding shares and the company is listed on the NYSE and Norwegian OTC with a market capitalization of approximately US$2.3 billion.