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Sembcorp, North Atlantic Drilling extend standstill agreement again

Written by  Sunday, 09 July 2017 22:04
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Sembcorp Marine subsidiary Jurong Shipyard has again extended its standstill agreement with North Atlantic Drilling to delay the delivery of the semisubmersible drilling rig, the West Rigel, for the fifth time.

The Singaporean shipbuilder said the new agreement has been further stretched for another six months to 6 January 2018.

During this time, West Rigel will remain at Jurong Shipyard’s yard in Singapore. North Atlantic Drilling 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.

However, in the event that no employment is secured and no alternative transaction is completed when the standstill period concludes, Sembcorp said, both parties will form a joint asset holding company for combined ownership of the rig.

Jurong Shipyard will hold majority shares in the venture with 77% interest while Seadrill’s North Atlantic Drilling owns 23% stake. The duo will continue to market the rig for the joint asset firm.

Jurong Shipyard bagged the US$568 million contract to build West Rigel, a sixth-generation semisubmersible, in April 2012. The design is based on the Moss Maritime CS60 design, an enhancement of the Moss Maritime CS50E MKII harsh environment ultra deepwater semisubmersible rigs West Pegasus and West Leo which were delivered by Jurong Shipyard to Seadrill in March 2011 and January 2012 respectively. 

Image: West Rigel / North Atlantic Drilling

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