SINGAPORE - Sembcorp Marine said a standstill agreement announced in June between its subsidiary Jurong Shipyard and North Atlantic Drilling has been extended for the delivery of the semi-submersible drilling rig, the West Rigel.
The new extension date is Jan 6, 2017.
During the standstill period, North Atlantic will continue to market the rig for an acceptable drilling contract while Jurong Shipyard will have the right to sell it at an acceptable price.
The rig will remain at the Jurong Shipyard's yard in Singapore during this period.
In the event that no employment is secured and no alternative transaction is completed when the standstill period concludes, the parties will form a joint asset holding company for joint ownership of the rig to be owned 23 per cent by North Atlantic and 77 per cent by Jurong Shipyard.