North Atlantic Drilling Ltd. (NADL) and Seadrill, actively engaged for some time in discussions with potential strategic partners to strengthen NADL’s position in harsh environment areas, have confirmed the signing of a preliminary agreement with an as yet unnamed industry player with a particular focus on Russia.

The agreement will help foster the growth of the harsh environment business, they said. The potential strategic partner “has a strong foothold in the Russian market, vast experience and competence in Arctic operations, including unique expertise in ice management”, commented NADL.

The potential partner will initially purchase a substantial minority stake in NADL from Seadrill priced around current market levels. It will also be granted an option to acquire a majority stake at a later stage at a premium to the current market levels. Signing and closing of the transaction is expected within the third quarter of 2013.

NADL has nine drilling units in its fleet, including five semisubmersibles, a drillship and three jackup rigs.