Northern Offshore acquired by Shandong Offshore

The NOK7.59 per share offer by Shandong has been unanimously recommended by the board of directors of NOF and undertakings to accept the offer have been received by approximately 65% of NOF’s shareholders, including Fredriksen’s Geveran Trading.

The acquisition price values Northern Offshore's issued share capital at approximately NOK 1.3 billion. The acquisition is expected to become effective during the first half of August 2015.

The takeover will see NOF merged with Shandong International Offshore subsidiary Blue Ocean Drilling with, the acquisition expected to become effective the first half of August.

“By retaining the NOF leadership team, when combined with our Blue Ocean Drilling leadership, we will have assembled a highly skilled and experienced team to direct and execute on our strategies as the new Northern Offshore Ltd. going forward,” said Yu Bing, director of Shandong Offshore International, and Sun Yuanhui, chairman of Blue Ocean Drilling.

Commenting on the Acquisition, Gary W. Casswell, President and CEO of NOF said: "This transaction represents a major milestone in Northern Offshore's previously stated strategy to transform our company to a niche, premium jackup drilling contractor with new, state of the art assets. With the exception of the Norwegian continental shelf, NOF will be able to operate in all major petroleum resource regions around the world."

Separately, Northern Offshore announced settlement with CAMAC Parties over energy searcher contract dispute. Its subsidiary Northern Offshore International Drilling Company or NOIDC has reached an agreement with Oceanic Consultants Nigeria Ltd., Allied Energy Plc, Erin Energy Corporation and CAMAC Petroleum Limited, referred to collectively as the CAMAC PARTIES, with respect to the Contract Dispute, settling all disputes and claims between NOIDC, NOF and the CAMAC PARTIES.