Rosneft expands partnership with North Atlantic Drilling


North Atlantic Drilling (NADL +1.8%) says it has expanded its offshore partnership with Russia's top oil producer Rosneft (OTC:RNFTF), securing a commitment for six offshore units through 2022.

NADL says total revenue potential for the six contracts exclusive of mobilization is ~$4.25B.

NADL is a subsidiary of no. 1 global offshore driller Seadrill (SDRL -0.1%).

Comments (18)
  • saratogahawk
    , contributor
    Comments (2536) | Send Message
     
    So few harsh environment rigs that this poses a real risk to STO and others for not locking these rigs up for Arctic and North Sea work.
    30 Jul 2014, 03:19 PM Reply Like
  • DividendInvestorLA
    , contributor
    Comments (3690) | Send Message
     
    Why do you think the drillers are doing so poorly? Is it that the "Street" is misreading the market? Wouldn't be the first time on offshore drillers...
    30 Jul 2014, 07:30 PM Reply Like
  • saratogahawk
    , contributor
    Comments (2536) | Send Message
     
    div I think the contract awards have slowed so that the E&Ps can absorb the last few years of results. Not a permanent situation but one that has occurred in this cyclical industry in the past.
    always the best time to buy when the "blood is in the streets". how can you go wrong right now with NADL? Not expensive, a huge new contract and new owner and a strong dividend.
    30 Jul 2014, 11:39 PM Reply Like
  • DividendInvestorLA
    , contributor
    Comments (3690) | Send Message
     
    Thanks Saratoga! I was thinking more of the weakness in the past week or so where all the charts of the drillers I follow went south and are now screaming "sell me!!!" (even NADL which powered right through the 50-day average like it wasn't there at all).

     

    It doesn't match the fundamentals in my view.
    31 Jul 2014, 12:53 AM Reply Like
  • HHE Invest
    , contributor
    Comments (41) | Send Message
     
    I agree, but still, I think the best buy is SDRL with huge contract backlog (for the two comming years with expected down time in demand), excellent management (stockfriendly), Yield about 10% and last but most important, 70% ownership of NADL
    31 Jul 2014, 02:46 AM Reply Like
  • fandangle
    , contributor
    Comments (3) | Send Message
     
    Won't the current sanctions scupper this deal ? As a shareholder I am quite concerned.
    30 Jul 2014, 03:46 PM Reply Like
  • sts66
    , contributor
    Comments (3359) | Send Message
     
    Neither Norway or Bermuda is part of the EU - no affect on NADL/SDRL/Rosneft partnership.
    30 Jul 2014, 04:02 PM Reply Like
  • The Rebel
    , contributor
    Comments (2819) | Send Message
     
    It looks like a lot of weak hands that were uninformed about that have bailed out over the last couple of weeks. Glad to be rid of them.
    30 Jul 2014, 06:57 PM Reply Like
  • HHE Invest
    , contributor
    Comments (41) | Send Message
     
    I do not agree, Norwegian government has communicated that they will follow the agreed sanctions of EU, but still I think the government will adapt it in a way that will not affect the economy in a large scale.. (STO also has huge contracts will Russian companies)
    31 Jul 2014, 02:51 AM Reply Like
  • HHE Invest
    , contributor
    Comments (41) | Send Message
     
    The sanctions regards new contracts made after the 1st of August
    SDRL sign the contract with Rosneft yesterday..
    31 Jul 2014, 08:15 AM Reply Like
  • saratogahawk
    , contributor
    Comments (2536) | Send Message
     
    Rosneft's cash and cash flow comfortably cover any and everything it might do with NADL/SDRL. It has much bigger MOUs with majors and National Oils that could be more affected in a severe sanction mode. Nothing about these sanctions is likely to work. Obama and the EU have shown themselves totally incapable of executing a tough minded foreign policy decision. I am not in the slightest worried about this for my holdings.
    30 Jul 2014, 07:05 PM Reply Like
  • Debutant
    , contributor
    Comments (2925) | Send Message
     
    I have lived and worked in Russia for a period of 4 years; done due diligence (financial, business, legal, manufacturing, safety & security, environment, ....) on numerous entities; negotiated at least a dozen deals (company acquisitions; goods and services supplies; construction works; etc) and signed off a quarter of them; started a sizeable manufacturing operation from scratch; and, thanks to all of that, got to know the Russian modus operandi inside out.

     

    Believe me when I say that Russia will survive these sanctions better than the sanctioners themselves can, and it (Russia) will come out stronger.
    31 Jul 2014, 06:31 AM Reply Like
  • Monsieur Greenbubbles
    , contributor
    Comments (138) | Send Message
     
    Da, comrade! Our capitalist pigs will conquer their capitalist pigs.
    31 Jul 2014, 02:18 PM Reply Like
  • harball
    , contributor
    Comments (438) | Send Message
     
    Survive, yes, no-one doubts it. But what does this have to do with NADL?
    31 Jul 2014, 05:49 PM Reply Like
  • mapodga
    , contributor
    Comments (7674) | Send Message
     
    Woud like to share optimismus here, but I'm afraid that in the next few steps the sanctions will be become more deep.
    And then I really don't believe that Norway will stay aside when they will their biggest partners made sanctions.
    Could be that US will put like ... Or we or Russians...
    31 Jul 2014, 10:57 AM Reply Like
  • Debutant
    , contributor
    Comments (2925) | Send Message
     
    True! The sanctions are likely to go wider, deeper and more painful .... to the point where they will hurt all parties involved, i.e., Russia, the USA, and the EU all together.

     

    Question : When the sanctions will hurt the Russian, the EU, and the US economies in different ways and degrees, which one of those three powers will afford helping out Ukraine whose economy has long been in dire straits? (Remember: These sanctions are meant to be helpful to Ukraine)
    31 Jul 2014, 04:21 PM Reply Like
  • harball
    , contributor
    Comments (438) | Send Message
     
    Ukraine will not accept any help from Russia. I can see a bailout by IMF and some support by the EU.

     

    This is a very dangerous situation. Putin cannot afford to lose face at home, so he'd rather have Russians starve than pull back in light of the sanctions. I actually expect them to escalate the conflict in Ukraine, possibly getting something ugly going in Odessa. I hope I am wrong.
    31 Jul 2014, 05:56 PM Reply Like
  • DividendInvestorLA
    , contributor
    Comments (3690) | Send Message
     
    Commence with Russia is 1% of U.S. commerce. Russia's exports to the U.S. is 5% of its exports (and there is a wide trade imbalance in favor of Russia).

     

    Personally, I don't see Russia as being particularly strong. President Putin is, however, particularly bold.

     

    Some countries in the EU would be hurt by real sanctions and a real embargo (we're far from that still as I'd argue we just started actual sanctions this week) but I don't see it having any effect on the U.S. (growth would have been 3.96% instead of 4% last quarter zeroing out Russian exports).
    31 Jul 2014, 11:02 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs