North Atlantic Drilling To Buy Portion Of Rosneft' Land Drilling Fleet In Russia

(RTTNews) - North Atlantic Drilling Ltd.(NADL), which is currently owned 70% of its outstanding shares by offshore drilling contractor Seadrill Ltd. (SDRL), said that it has signed an agreement to purchase a significant portion of Russian state oil company OAO Rosneft's (ROSN.L) land drilling fleet in Russia. Approximately 150 rigs will be acquired along with an award of new 5 year contracts with Rosneft for these units.

Rosneft will receive as consideration an approximate 30% stake in NADL by receiving primary shares at the price agreed upon in May of US$9.25 per share, with the balance being paid to NADL in cash. Following the transaction Seadrill Limited will continue to own more than 50% of NADL.

The transaction is expected to close during the fourth quarter of this year. According to the agreement, any break rights expire after 77 days. Upon closing Rosneft will be entitled to appoint two of seven Board seats on NADL's Board of Directors.