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Sembmarine extends NADL newbuild rig standstill

Sembmarine extends NADL newbuild rig standstill
Sembcorp Marine and North Atlantic Drilling Ltd (NADL) have agreed to kick the can yet further down the road on a harsh environment semi-submersible drilling rig West Rigel.

Sembmarine announced a standstill on the newbuild rig in early December 2015 until 8 June this year, which was extended till 2 September. As the offshore marine market continues to struggle the standstill agreement with Jurong Shipyard has been extended until 6 January 2017.

During the standstill NADL will continue to market the rig for an “acceptable contract” and it will remain in Jurong Shipyard.

If a contract cannot be found the two companies will form a joint asset holding company whereby Jurong Shipyard will own 77% of the rig and NADL 23% and it will be continued to be marketed for sale.