Rosneft inks North Atlantic drilling contract

The deal is valued at $4.25 billion.
By Daniel J. Graeber Follow @dan_graeber Contact the Author   |   July 31, 2014 at 8:43 AM

ROSNEFT, Russia, July 31 (UPI) -- Russian oil company Rosneft said it signed a $4.25 billion deal to secure drilling rigs from North Atlantic Drilling Ltd. for work in harsh offshore areas.

The companies signed contracts for drilling rigs set to deploy into Russian waters as early as next year.

Rosneft Chief Executive Officer Igor Sechin said the deal gives his company an opportunity to lay a sound exploration and development foundation in harsh offshore environments.

North Atlantic Drilling Ltd., based in Bermuda and listed on the New York Stock Exchange, specializes in drilling into the North Atlantic basin. Neither company indicated into what fields the drilling rigs would be deployed.

The contract follows tough new sanctions imposed by Western powers on the Russia energy, arms and financial sectors in response to the Kremlin's position on crises in Ukraine.

Washington issued specific sanctions against the financial arm of Russian gas company Gazprom, gas producer Novatek and oil company Rosneft last week.

Sechin, himself the target of U.S. sanctions, said the company's strategy was impeded by the economic pressure.

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