Sembmarine, NADL further extend newbuild rig standstill by six months

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.”