Singapore’s Sembcorp Marine says that it’s Jurong Shipyard has further extended a standstill agreement with John Fredriksen’s North Atlantic Drilling for the semi-submersible rig West Rigel.
In December 2015, both parties reached an agreement to delay delivery to June 2016 and have since continued to extend the agreement. The latest extension is through to July 6, 2017.
Both parties will continue to market the $568m rig and if it isn’t employed or sold, the two companies will form a joint asset holding company to be owned 23% by North Atlantic Drilling and 77% by Jurong Shipyard. The new company will continue to market the rig for employment and for sale.