MOSCOW, September 1 (RIA Novosti) - The Norwegian company North Atlantic Drilling Limited (NADL) that signed various contracts with Russia’s oil giant Rosneft during the summer period, hopes to continue doing business with Rosneft and other Russian companies, despite the possibility of the imposition of new sanctions against Russia by the West, NADL’s chief executive Alf Ragnar Lovdal said.
“I hope we can work closely with them for many years and I hope we can expand that business with them and others because I believe there is a big future in the Arctic. There are a lot of wells to be drilled in the coming years,” Lovdal said as quoted by the Financial Times.
The $4.6 billion deal includes the acquisition of 30 percent of NADL’s shares by Rosneft through an exchange of assets and investments, with the option for the Russian company to increase its stake in Norwegian firm.
The agreement also allows Rosneft to acquire a fleet of offshore platforms, including six offshore rigs to drill for oil up until 2022.
The $4.25 billion contract was signed just days before August 1, when the European Union imposed a ban on the export of technology to be used in Arctic exploration, unjustifiably blaming Russia in meddling with Ukraine’s internal affairs.
NADL’s chief executive believes that all aspects of its partnership with Rosneft comply with current sanctions.
“So far it’s OK. For us it’s important and that is why we spend time investigating. If there is a change [in sanctions], we have to revisit. For us we have to work within the rules and regulations at the time,” Lovdal said as cited by the Financial Times.
A deal worth $4.6 billion is the biggest contract that NADL has ever signed and it is crucial for the company with a market capitalization of about $2.6 billion.
NADL is a leading drilling company with extensive experience of working in harsh climate conditions. About 70.4 percent of its shares belong to Seadrill, the world’s largest rig operator.
