Rosneft Mulls Expansion with Offshore, Urals Agreements

Russia’s Rosneft is looking for new opportunities, acquiring a significant stake in North Atlantic Drilling (NADL) and signing an agreement with BP for implementation of a joint pilot project to explore Domanik formations in the Urals region. 

‘North Atlantic Drilling Ltd. and Seadrill Limited are pleased to announce that an Investment and Co-operation Agreement has been executed with Rosneft in order to pursue growth opportunities offshore and onshore in the Russian market through at least 2022. As part of these proposed opportunities, NADL will enter the onshore drilling market in Russia and enter into contracts for multiple offshore assets. In addition Rosneft will be acquiring a significant equity stake in NADL,’ reads a note released by Seadrill on Monday.

Seadrill Limited currently owns 70% of the outstanding shares of NADL, which is an offshore drilling company with focus on the North Atlantic basin.

On Saturday, BP released a communiqué about joint projects in the Urals.

‘The Heads of Agreement provides for implementation of a joint pilot project by Rosneft and BP relating to the Domanik formations and, in the event of success, the possible development of unconventional Domanik resources in the Volga-Urals region. The joint venture company (Rosneft 51%, BP 49%) will be incorporated in Russia.’