Seadrill, NADL and Rosneft have agreed to delay the agreement announced on 26 May until May 2015. The move will ultimately allow the partnership to play for time whilst the uncertainty around ongoing sanctions persists.
The JV arrangement was signed before sanctions began to be applied to Russia’s oil and gas industry by Western governments in response to ongoing human rights abuses in Ukraine. The transaction’s break clause will also be extended to the same new timeframe.
A statement released by NADL confirmed that all parties were strongly committed to seeing the arrangement through. It will see Rosneft taking on NADL equity in return for it carrying out onshore and offshore drilling in Russia, as well as providing drilling services and offshore support for the Kara Sea programme.
NADL focuses on harsh offshore environments in the North Atlantic. It has a fleet of nine drilling units, including three jack-up rigs, a drillship and five semi-submersibles. 70pc of its shares are owned by Seadrill Ltd, which will remain the biggest shareholder after the transaction does go through.Last updated on 10:14AM - 18/11/14