Rosneft gains stakes in North Atlantic Drilling, Seadrill in major rig deal

|About: North Atlantic Drilling Ltd. (NADL)|By:, SA News Editor

North Atlantic Drilling (NADL) +8.8% premarket after signing a cooperation deal with Rosneft (RNFTF) that will make Russia’s biggest oil company one of its largest shareholders; NADL is 70%-owned by Seadrill (SDRL).

NADL says the deal anticipates a number of long term contracts to pursue growth opportunities offshore and onshore in the Russian market through at least 2022, and envisions initial employment of up to nine offshore rigs to Rosneft with a total commitment of 35 rig years.

The companies see "huge possibilities” in the Russian market despite current tensions between Russia and the West; SDRL CFO Rune Magnus Lundetrae says, "We operate in many parts of the world where there is or can be unrest, so it’s just business as usual for us."

SDRL +2.4% premarket.