Rosnefts CEO Igor Sechin casts a beady eye on Norway
At least something came out of the St. Petersburg International Economic Forum last week. Russian oil company Rosneft and the world’s largest offshore driller NADL Norway’s Seadrill subsidiary North Atlantic Drilling on Saturday signed a cooperation agreement in which NADL will enter the onshore drilling market in russia while Rosneft will be acquiring a “significant equity” stake in NADL. However, no financial details were disclosed. Seadrill owns 70 percent of NADL.
NADL has already been contracted to drill the first two wells in the Kara Sea as part of Rosneft and Exxon’s joint venture during 2014 and 2015.
"Rosneft is a
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Alf Ragnar Løvdal, CEO of NADL comments that “We have sought to access the growth opportunity represented by the Russian market for several years, and we are very pleased to have reached an agreement with Rosneft for this landmark transaction. The Russian market is one of the most attractive opportunities in the world and offers tremendous growth potential for North Atlantic Drilling. By partnering best in class drilling with a supermajor who produces over 5m barrels per day, we, after closing of this transaction, will have created a powerful force in the Russian market and for Arctic regions on a global basis. We look forward to closing this important transaction and working with Rosneft for many years to come”
Norwegian John Fredriksen sees this as an opportunity for business in years to come while the rest of us wonders where sense went. This takes place amid justified concerns both about Putins next step in intimidating all free states, and possibly soon in Norways immediate neighbourhood Finland and Sweden. Any aggression further MAY trigger extended sanctions even on corporate level, something avoided till now with the exceprion of 2 russian banks and managements of some key energy corporations.
The west has been lout to hit corporations as it will also boomerang to EU economies.
But even the uncertainity can be enough to topple more than mr Fredriksen.