Sembcorp Marine's delayed rig delivery to North Atlantic Drilling extended to Sept

SEMBCORP Marine on Wednesday said the standstill agreement between its unit Jurong Shipyard Pte Ltd (JSPL) and North Atlantic Drilling Ltd (NADL) for the delivery of the semi-submersible drilling rig, the West Rigel, has been extended to Sept 2, 2016. The agreement was due this month.

During the standstill period, NADL will continue to market the rig for an acceptable drilling contract and JSPL will have the right to sell the rig at an acceptable price. The rig stays at the JSPL yard in Singapore during this period.

If the rig cannot secure a drilling contract and no alternative transaction is completed by the September deadline, the parties will form a joint asset holding company for joint ownership of the rig, with 23 per cent owned by NADL and the remaining 77 per cent held by JSPL. Both will then continue to market the rig for an acceptable drilling contract or for sale.