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NADL, Seadrill and Rosneft play for time while sanctions persist

10th November 2014

NADL, Seadrill and Rosneft have mutually agreed to delay the transaction announced on May 26 2014 until the end of May 2015

NADL, Seadrill and Rosneft play for time while sanction last
The original agreement was signed before Western governments began placing sanctions on the Russian oil and gas industry in response to the crisis in Ukraine

The break rights under the transaction have also been extended to the end of May 2015.

Both parties remain committed to the transaction, according to a statement from NADL.

The original agreement was signed before Western governments began placing sanctions on the Russian oil and gas industry in response to the crisis in Ukraine.

The agreement saw Rosneft acquire equity in NADL in exchange for it performing offshore and onshore drilling in Russia and providing offshore support and drilling services at its Kara Sea arctic programme.

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 per cent of the outstanding shares and the company is listed on the NYSE and Norwegian OTC with a market capitalisation of approximately USD 2.1bn.

Seadrill, after the initial transaction, will remain the largest shareholder in NADL.

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