Sembcorp unit further extends standstill agreement with NADL over rig

The standstill agreement between Jurong Shipyard and North Atlantic Drilling has been further extended by six months.
The standstill agreement between Jurong Shipyard and North Atlantic Drilling has been further extended by six months.PHOTO: BLOOMBERG

SINGAPORE - Rig builder Sembcorp Marine said on Monday that the standstill agreement between its unit Jurong Shipyard and North Atlantic Drilling Ltd (NADL) has been further extended by six months.

The agreement for the delivery of the West Rigel semi-submersible drilling rig got an extension up to July 6, 2017.

During the standstill period, NADL will continue to market the unit for an acceptable drilling contract and Jurong Shipyard will have the right to sell the unit at an acceptable price, the company said in a statement.

West Rigel will be at the Jurong Shipyard during this period. In the event that no employment is secured or no alternative transaction is completed until the standstill period conclues, the parties will form a joint asset holding company for joint ownership of the unit to be owned 23 per cent by NADL and 77 per cent by Jurong Shipyard.

NADL will market the rig for drilling contracts and Jurong Shipyar will market it for sale.