ROSNEFT & SEADRILL: FAMILY
OAO Rosneft, Seadrill Ltd., and North Atlantic Drilling Ltd. (NAD) have signed a framework agreement under which NAD will acquire about 150 land drilling rigs from Rosneft as well as 5-year contracts for the rigs. The transaction is expected to close in this year's fourth quarter.
In exchange for the rigs, Rosneft would gain a 30% stake in NAD at $9.25/primary share. Seadrill, currently holding 70% of NAD's outstanding shares, would continue to own more than 50%.
Rosneft would be entitled to appoint two of seven NAD board members.
Rosneft Pres. Igor Sechin said the company will "strengthen its positions on the market of high-technology oil field services alongside with the world's sector leaders."
NAD has five semisubmersibles, a drillship, and three jack ups. In July, NAD and Rosneft signed long-term offshore drilling contracts for six rigs.
A joint venture of Rosneft and ExxonMobil Corp. is drilling an exploratory well in the Kara Sea using the West Alpha semisubmersible owned by NAD.
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GAZPROM - The parties discussed relevant issues related to bilateral cooperation, including the Baltic LNG project. Emphasis was placed on the priority measures aimed at developing a joint design concept (pre-FEED).
BHGE - U.S. Rig Count is up 11 rigs from last week to 1,063, with oil rigs up 8 to 869, gas rigs up 4 to 193, and miscellaneous rigs down 1 to 1. Canada Rig Count is up 13 rigs from last week to 195, with oil rigs up 8 to 127 and gas rigs up 5 to 68.
REUTERS - Brent crude futures had risen $1.02 cents, or 1.3 percent, to $81.28 a barrel by 0637 GMT. The contract dropped 3.4 percent on Thursday following sharp falls in equity markets and indications that supply concerns have been overblown. U.S. West Texas Intermediate (WTI) crude futures were up 80 cents, or 1.1 percent, at $71.77 a barrel, after a 3 percent fall in the previous session. WTI is on track for a 3.5 percent drop this week.
EIA - Brent crude oil spot prices averaged $79 per barrel (b) in September, up $6/b from August. EIA expects Brent spot prices will average $74/b in 2018 and $75/b in 2019. EIA expects West Texas Intermediate (WTI) crude oil prices will average about $6/b lower than Brent prices in 2018 and in 2019.