Sembcorp Marine extends rig delivery to North Atlantic Drilling by three months

The unit will remain at Jurong shipyard.

Sembcorp Marine has lengthened the standstill agreement between North Atlantic Drilling and Jurong Shipyard for the delivery of the West Rigel, a semi-submersible drilling rig.

According to a press release by Sembcorp Marine, the agreement has been extended until September 2 of this year, and NADL will continue to market the Unit for an acceptable drilling contract.

“JSPL will have the right to sell the Unit at an acceptable price. The Unit will remain at the JSPL yard in Singapore during this period,” the press release noted.

In the event that no employment is secured and no alternative transaction is completed when the standstill period concludes, the press release added that the parties will form a Joint Asset Holding Company for joint ownership of the Unit to be owned 23% by NADL and 77% by JSPL.

“NADL will continue to market the Unit for the Joint Asset Holding Company for an acceptable drilling contract while JSPL will continue to market the Unit for sale,” Sembcorp Marine stated.