North Atlantic Drilling looks to delay rig at Sembcorp

North Atlantic Drilling looks to delay rig at Sembcorp

North Atlantic Drilling, the majority owned subsidiary of John Fredriksen-controlled Seadrill, has revealed in it’s third quarter report that it is currently in discussions with Sembcorp Marine’s Jurong Shipyard in Singapore to delay delivery of semi-submersible rig West Rigel.

The $568m rig is scheduled for delivery before the end of the year, and North Atlantic said discussions with the yard were ongoing “regarding alternatives” for the rig.

A final installment of $455m is due upon delivery, and North Atlantic Drilling may have a good position to negotiate due to the order, placed in 2012, having a scheduled delivery during the first quarter of 2015.

Earlier today, Singapore’s Marco Polo Drilling initiated legal proceedings against another Sembcorp Marine yard, PPL Shipyard, claiming that a jack-up rig ordered at the yard has cracks in all three legs found during testing. MP Drilling says it will not take delivery of the unit and has served the shipyard with a notice of contract termination, while the yard refuses to refund the initial payment claiming Marco Polo is in breach of contract.

Grant Rowles

Grant spent nine years at Informa Group based in London, Sydney, Hong Kong and Singapore. He gained strong management experience in publishing, conferences and awards schemes in the shipping and legal areas, working on a number of titles including Lloyd's List. In 2009 Grant joined Seatrade responsible for the commercial development of Seatrade’s Asia products. In 2012, with Sam Chambers, he co-founded Asia Shipping Media.

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