Singaporean shipbuilder Jurong Shipyard has further extended its standstill agreement with North Atlantic Drilling Ltd. (NADL), which will delay the delivery of the West Rigel semisubmersible drilling rig for the fifth time.
The Sembcorp Marine subsidiary said the new agreement has been delayed for another six months to 6 January 2018.
During this time, West Rigel will remain at Jurong Shipyard’s yard in Singapore. 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.
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 inked 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.