Sembcorp Marine extends standstill agreement with North Atlantic Drilling

It delayed the delivery of West Rigel rig to January 2017.

After the supposed delivery of the West Rigel rig in June, Sembcorp Marine Ltd. extends its standstill agreement with North Atlantic Drilling Ltd. (NADL) to January 2017.

The standstill agreement is currently being carried out by Sembcorp's wholly owned subsidiary, Jurong Shipyard Pte Ltd.

According to the group, the sixth generation harsh environment semi-submersible drilling rig will remain at Jurong Shipyard's yard in Singapore during this period and will be marketed by the NADL.

Should the rig not be able to secure a drilling contract and no alternative transaction is completed before the said deadline, both sides will form a company to jointly hold the unit: 23% by NADL and 77% by Jurong Shipyard.

"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," the group said.