North Atlantic Drilling has again extended a newbuild rig contract standstill agreement with Singapore's Sembcorp Marine.
Sembcorp Marine's subsidiary Jurung Shipyard has been building the semisubmersible drilling rig West Rigel, on which a standstill agreement had already been put in place.
The agreement, already extended a number of times, has been further extended to 6 July 2017.
During the standstill period, NADL will continue to market the unit for an acceptable drilling contract and Jurong Shipyard will have the right to sell the rig at an acceptable price.
The unit will remain at Jurong Shipyard in Singapore during this period. In the event that no employment is secured and no alternative transaction is completed when the standstill period concludes, the two firms will form a joint asset holding company for joint ownership of the rig, to be owned 23% by NADL and 77% by JSPL.
NADL will continue to market the rig for the joint asset holding company for an acceptable drilling contract while Jurong Shipyard will continue to market the unit for sale.