Rosneft sent North Atlantic Drilling Ltd. (NADL) a notice of termination for the West Navigator, in connection with a framework agreement between the two companies.
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The West Navigator. From NADL. |
The West Navigator drillship was scheduled to begin a five-year contract with Rosneft during the summer 2015, which would have required earlier mobilization. As outlined in NADL’s 4Q 2014 results report, the company believes that it will be very challenging to close the transactions with Rosneft on the same terms or in the timeframe contemplated in the executed agreements, and that there were significant risks attached to the US$4.1 billion order backlog related to the drilling contracts with Rosneft.
The termination of the service order for West Navigator will reduce NADL's contract backlog by $1 billion. NADL will be marketing the West Navigator for alternative future opportunities, however remains in discussions with Rosneft to explore various alternatives for future cooperation.
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