Sembmarine, NADL further extend newbuild rig standstill by six months

Sembcorp Marine’s Jurong Shipyard and North Atlantic Drilling Ltd (NADL) have agreed to further delay the delivery of a semi-submersible drilling rig by another six months to 6 January 2018 from 6 July 2017.

The delivery of the rig, West Rigel, was first delayed in December 2015 under a standstill agreement.

Sembmarine reiterated that during the standstill period, NADL will continue to market the rig for an acceptable drilling contract and Jurong Shipyard will have the right to sell the unit at an acceptable price.

“In the event that no employment is secured and no alternative transaction is completed when the standstill period concludes, the parties will form a joint venture holding company for joint ownership of the unit to be owned 23% by NADL and 77% by Jurong Shipyard,” Sembmarine said.

“NADL will continue to market the unit for the joint asset holding company for an acceptable drilling contract while Jurong Shipyard will continue to market the unit for sale.”

Posted 7 July 2017

© Copyright 2019 Seatrade Informa Markets. Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of Seatrade Informa Markets.

Related Topics

Lee Hong Liang

Author Bio ▼

Asia Correspondent Lee Hong Liang has joined Seatrade as its Asia Correspondent. Based in Singapore, he will provide a significant boost to daily coverage of the Asian shipping markets, as well as bring with him an indepth, specialist knowledge of the bunkering markets. Throughout Hong Liang’s 14-year career as a maritime journalist, he has reported ‘live’ news from conferences, conducted one-on-one interviews with top officials, and the ability to write hard news and feature stories.

Sign up to get the latest Maritime News headlines emailed directly to your inbox