Rosneft, Seadrill and North Atlantic Drilling have agreed to extend their framework agreement until 31 May 2017.

The initial agreement, which was signed in August 2014, was due to close in May. It includes long-term cooperation in the oilfield development projects.

The framework agreement signed in August last year foresees acquisition of NADL’s shares by Rosneft through an exchange of assets and investments in NADL charter capital.

"The transaction aims to enable Rosneft’s acquisition of a fleet of platforms and drilling rigs for offshore drilling operations."

The transaction aims to enable Rosneft’s acquisition of a fleet of platforms and drilling rigs for offshore drilling operations, and its expantion of activites in the sphere of design and engineering of specialised marine equipment.

The three companies agreed in May 2014 to form a long-term partnership in Russia, with Rosneft acquiring a stake in North Atlantic Drilling, and the latter signing long-term contracts for onshore and offshore drilling in the country.

Under the current extension, the parties concerned have agreed to renegotiate the terms and characteristics of the transactions proposed in the original framework agreement and the terms of the associated offshore drilling contracts.

North Atlantic Drilling is allowed to market the offshore drilling rigs subject to its existing drilling contracts with Rosneft and sign binding contracts with third parties.

The company will also be allowed to delay the construction, delivery, or shipyard stay of any of those rigs.

North Atlantic Drilling has eight drilling units in the fleet, including four semi-submersibles, a drillship, and three jack-up rigs.

The company accounts for over 40% of the Russian oil production.