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Sembmarine and NADL in standstill agreement on rig newbuild

Sembmarine and NADL in standstill agreement on rig newbuild
A day after saying it expected to make a loss in Q4 Sembcorp Marine (Sembmarine) said it had reached a standstill agreement with North Atlantic Drilling (NADL) on a semi-submersible rig newbuild.

Sembmarine unit Jurong Shipyard has agreed with NADL for standstill period until June 2016 on the harsh environment semi-submersible West Rigel.

During in the standstill period NADL will continue to try and find a contract for the rig, while Jurong Shipyard has the right to sell the rig at “an acceptable price”.

The rig will remain in Jurong Shipyard during the standstill period.

If neither a charter contract is secured or the rig sold, the two companies have agreed to form a joint asset holding company owned 23% by NADL and 77% by Jurong Shipyard and they will continue to seek either employment or sale of the rig.