MOSCOW, July 31 (RIA Novosti) - New rounds of economic sanctions imposed on Russia by the United States and European Union will not infringe on the $4.25 billion contract between Russian oil giant Rosneft and Norwegian Seadrill’s subsidiary North Atlantic Drilling (NADL), because it was signed before the restrictions go into effect, said Seadrill’s CFO Rune Magnus Lundetrae.
“We understand that the sanctions will be possibly valid from Friday, August 1, and apply to future contracts. And these contracts were signed July 29,” Lundetrae told Bloomberg.
NADL’s long-term agreement with Rosneft stipulates providing six offshore drilling rigs to the Russian company through 2022 in order to implement Rosneft’s shelf projects, including those conducted in harsh weather conditions. Also according to the Investment and Co-operation Agreement between Rosneft, NADL and its majority shareholder Seadrill, signed on May, 2014, Rosneft is to acquire a significant equity stake in NADL.
New economic sanctions by the United States and the European Union were announced this week. The EU sanctions package prohibits exporting to Russia technologies and equipment linked to deep water and Arctic oil exploration and production, as well as to shale-oil projects. The EU sanctions are expected to take effect Friday, August 1.
The United States also introduced sanctions banning future contracts on supplying Russia with technologies and equipment used for hydrocarbon development.
North Atlantic Drilling is an offshore harsh environment drilling company. Its fleet currently consists of nine harsh environment units. Seadrill currently owns 70 percent of North Atlantic Drilling.
