Slaughter and May is advising North Atlantic Drilling (NADL) and Seadrill Limited on a long term Investment and Co-operation Agreement with Rosneft to pursue growth opportunities offshore and onshore in the Russian drilling market at least through 2022.
As part of the arrangements, which were announced on May 26, 2014, NADL will enter the onshore drilling market in Russia and enter into contracts for up to 9 offshore drilling units with a total commitment of 35 rig years. In addition, Rosneft will acquire a significant equity stake in NADL. Closing of the transaction is expected in the second half of 2013, subject to customary due diligence, agreement on further detailed transaction terms, and respective Board approvals.
NADL is an offshore harsh environment drilling company with a focus on the North Atlantic basin. It is listed on the NYSE and Norwegian OTC with a market capitalization of approximately USD 2.1 billion. Seadrill currently owns 70% of the outstanding shares and will remain the largest shareholder in NADL after the initial transaction.
Alf Ragnar Lovdal, the Chief Executive Officer of NADL, issued a formal statement: "We have sought to access the growth opportunity represented by the Russian market for several years, and we are very pleased to have reached an agreement with Rosneft for this landmark transaction. The Russian market is one of the most attractive opportunities in the world and offers tremendous growth potential for North Atlantic Drilling. By partnering best in class drilling with a supermajor who produces over 5m barrels per day, we, after closing of this transaction, will have created a powerful force in the Russian market and for Arctic regions on a global basis. We look forward to closing this important transaction and working with Rosneft for many years to come"
Slaughter and May is working as a team with Wiersholm and Alrud on the transaction.
