Russian oil firm Rosneft and North Atlantic Drilling (NADL) have signed long-term offshore drilling contracts.
Under the transaction, Rosneft will use NADL’s six offshore drilling rigs until 2022 to undertake its offshore projects.
Rosneft executive chairman Igor Sechin said: "Entering into long-term offshore drilling agreements will allow Rosneft to ensure implementation of exploration and development of its harsh environment offshore license areas."
North Atlantic Drilling CEO Alf Ragnar Lovdal said: "We are very pleased with the execution of these contracts, which is in line with the timetable agreed earlier this year.
"Our partner Rosneft has shown remarkable cooperation at every stage throughout this process.
"This milestone is testament to the ability of both NADL and Rosneft’s employees, and we hope that further transactions can be concluded in a similar manner."
NADL has nine drilling units in the fleet, including five semi-submersibles, a drillship and three jackup rigs.
The long-term contracts are part of an agreement that Rosneft signed in May 2014 with NADL to employ around nine offshore rigs for about 35 rig years.
Rosneft will also acquire a significant equity stake in NADL, which is a majority-owned subsidiary of Seadrill.
NADL has already been contracted to drill the first two wells in 2014 and 2015 in the Kara Sea for Rosneft’s joint-venture (JV) with Exxon Mobil.
NADL said its operations in Stavanger will continue and it will focus on existing operations and future growth.
Image: Rosneft will use NADL’s six offshore drilling rigs until 2022 to undertake its offshore projects. Photo: courtesy of suwatpo / FreeDigitalPhotos.net.