OCTOBER 4, 2016 — Sembcorp Marine Ltd says that its Jurong Shipyard Pte Ltd subsidiary has agreed to continue its standstill agreement with John Fredriksen backed North Atlantic Drilling Ltd for the delivery of the semi-submersible drilling rig West Rigel until January 6, 2017.
During the stand still, the rig will stay at the shipyard. North Atlantic will continue to try to find an acceptable drilling contract for the rig and the shipbuilder will have the right to sell the unit at an acceptable price.
If no employment is secured and no alternative transaction is completed when the standstill period concludes, the parties will form a Joint Asset Holding Company for joint ownership of the unit to be owned 23% by North Atlantic and 77% by Jurong. North American will then continue to market the unit for the Joint Asset Holding Company for an acceptable drilling contract while Jurong will continue to try to sell it.