Russia’s Rosneft will acquire a 30 percent stake in North Atlantic Drilling (NADL) in exchange for 150 land drilling rigs and cash, NADL said Friday.
The 30 percent stake is worth about $1 billion.
Rosneft will receive most of its stake in primary shares worth $9.25 per share and pay for the $200 million balance with cash, Bloomberg said.
The deal gives NADL a “significant portion” of Rosneft’s land drilling fleet.
The purchase will also include a share of the new five year contracts Rosfneft holds for the purchased units.
Rosneft will be entitled to appoint two of the seven board seats on NADL’s Board of Directors.
Seadrill Limited currently holds a 70 percent stake in NADL and will continue to own more than 50 percent after the deal closes.
Seadrill is owned by Norwegian billionaire John Fredriksen.
The transaction is expected to close during the fourth quarter of this year.
NADL said it will go through with the deal despite the EU sanctions placed against Russia and Rosneft aimed at limiting financial transactions and deals involving drilling technology.
NADL executives told Bloomberg that the company is not concerned that the sanctions will affect the deal.
NADL is a offshore harsh environment drilling company with focus on the North Atlantic Basin.