North Atlantic Drilling: West Navigator Contract Terminated by Rosneft

North Atlantic Drilling Ltd. (NADL) has received a notice of termination from Rosneft of the service order for the West Navigator in connection with the Framework Agreement. The drillship was indicatively scheduled to commence operations under its five-year contract with Rosneft during the summer of 2015, which would have required earlier mobilisation. As outlined in our fourth quarter 2014 results report, NADL 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 US$1.0 bn. NADL will be marketing  the West Navigator for alternative future opportunities, however remains in discussions with Rosneft to explore various alternatives for future co-operation.

Questions should be directed to North Atlantic Management AS represented by:

Ragnvald Kavli – Chief Financial Officer
Tore Byberg – VP Commercial Finance