Further delay for Seadrill, NADL, Rosneft $4B deal

Oil company Rosneft, and offshore drillers Seadrill Limited and North Atlantic Drilling Limited (NADL) in 2014 signed a Framework Agreement that envisaged long-term cooperation in the sphere of oilfield development projects.

Under the deal Rosneft was to acquire a 30 percent share in NADL in exchange for land drilling rigs and cash. Moreover, agreement’s options contemplated a possibility for Rosneft to increase its stake in NADL according to the development of the cooperation.

In a separate agreement, NADL, an offshore harsh environment drilling company with focus on the North Atlantic region, was to provide six offshore drilling rigs to Rosneft.

In November 2014 the long stop date for closing the transaction was extended to the end of May 2015.

At the time, the Russian media said the reason for the delay of the $4.2 billion deal were the US sanctions against Russia imposed on September 12, 2014, as NADL and Seadrill Limited were listed on the NYSE (New York Stock Exchange).

The closing of the transaction was subsequently extended further to the end of May 2017.

On Wednesday, the parties agreed to further extend the long stop date of the Framework Agreement until May 31, 2019.

“During this time, Seadrill and NADL can continue to market the offshore drilling rigs and enter into binding contracts with third parties,” Seadrill said in a statement.