Jurong Shipyard further extends standstill agreement with North Atlantic Drilling

SEMBCORP Marine on Monday said that a standstill agreement between its unit Jurong Shipyard and North Atlantic Drilling has been further extended to July 6, 2017.

The agreement is for the delivery of a semi-submersible drilling rig, the West Rigel.

Sembcorp said that during the standstill period, North Atlantic Drilling will continue to market the West Rigel for an acceptable drilling contract and Jurong Shipyard will have the right to sell the rig at an acceptable price.

The rig will remain at the Jurong Shipyard in Singapore during this period.

Sembcorp added that if 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. It will be 23 per cent owned by North Atlantic and 77 per cent owned by Jurong Shipyard.