John Fredriksen-owned North Atlantic Drilling buys 150 rigs from Russian Rosneft. The transaction involves a significant part of Rosneft's fleet of land-based rigs in Russia, according to a corporate statement from North Atlantic Drilling.
The deal, which in addition to the around 150 rigs also includes new five-year contracts with Rosneft, has been signed after the two companies announced a preliminary agreement back in May aimed at investments and collaborations. The two companies signed binding offshore contracts in late July.
The deal will make Rosneft a shareholder in North Atlantic Drilling, with a 30 percent ownership stake.
"Following the transaction Seadrill Limited (John Fredriksen's company) will continue to own more than 50 percent of North Atlantic Drilling," says the company.
The transaction is expected to be completed during the 4th quarter, and Rosneft will get two of a total seven seats on the company's Board of Directors.
According to Norwegian newspaper Dagens Næringsliv, analyst Anders Bergland of RS Platou Markets estimates that the deal is worth around USD 749.2 million.
The deal comes at a controversial time where the West has introduced comprehensive sanctions against Russia, which has responded with counter-sanctions, following the conflict between Russia and Ukraine. The statement from North Atlantic Drilling informs that the final transaction complies with the preliminary agreement reached by the parties in May.
Rosneft and North Atlantic Drilling signed new leasing contracts in July for six offshore rigs, valid until 2022.
North Atlantic Drilling as well as Seadrill and other of the Norwegian-born shipowner's companies, including tanker carrier Frontline 2012, are registered in Bermuda.
"We are very pleased with the execution of this important transaction and welcome Rosneft as an equity partner and to our Board of Directors," says Alff Ragnar Lovdal, CEO, North Atlantic Drilling.
Concerns about Rosneft deal at North Atlantic Drilling
More from ShippingWatch
SDK Freja anticipates steep earnings drop following record year
Logistics company SDK Freja, which delivered record financials with great advancement on top and bottom lines, takes a more gloomy view of the current fiscal year due to several ”external factors.” However, the growth target remains the same, CEO tells ShippingWatch.
Draft and bottlenecks have become new barriers for grain exports out of Ukraine
With major ports mined and few exits out of Ukraine, small ships are piling up in an attempt to export grain. CEO of bulker company BPG Shipping/Kronos Bulkers Gennadiy Ivanov presents his views of the impact of the war.
LNG carriers concerned about increasing ship prices
The price on new LNG vessels has soared vigorously, and for Flex LNG this has meant a withdrawal from the market for new ships. Such was the statement by Flex LNG’s chief exec at Marine Money in New York, where he also announced new long-term charter agreements.
Maersk ships delayed up to three weeks on US east coast
Bottlenecks at major container ports on the US east coast have entailed that Maersk vessels are affected by delays of up to three weeks. It’s a combination of congestion, many ships, and a lack of container space, Maersk says.
Desmi founder on selling life's work: "A company of a certain age, you can't own forever"
Despite a big, long-awaited sale, Henrik Sørensen continues at the helm of his life’s work, maritime technology provider Desmi. In an interview with ShippingWatch, the Danish owner elaborates on the decision to sell a majority stake and the next step for the pump manufacturer.
Senior Legal Counsel with a focus on Offshore Renewables 
Accountant Assistant - Creditor & Payment Team 
Data Scientist - Transition, Modelling & Analytics 
Head of Vessel Operations 
Head of Airfreight