Sembcorp Marine extends rig standstill agreement with North Atlantic Drilling

SINGAPORE - Sembcorp Marine said on Wednesday (June 8) that it has extended a standstill agreement between its Jurong Shipyard unit and North Atlantic Drilling Ltd for semi-submersible drilling rig West Rigel, delaying delivery to Sept 2, 2016.

During the standstill period, North Atlantic Drilling will continue to market the rig for an acceptable drilling contract and Jurong Shipyard will have the right to sell it at an acceptable price. The rig will remain at Jurong Shipyard during this period.

If the rig is not employed or sold, the two companies will form a joint asset holding company to be owned 23 per cent by North Atlantic Drilling and 77 per cent by Jurong Shipyard. The new company will continue to market the rig for employment and for sale.