Sembcorp Marine refers to the announcement made on January 9, 2017, on a standstill agreement between North Atlantic Drilling Ltd (NADL) group and Jurong Shipyard Pte Ltd (JSPL), a wholly owned subsidiary of the Company, for the delivery of the semi-submersible drilling rig, the West Rigel.
The Company wishes to announce that the standstill agreement has been further extended to January 6, 2018.
During the standstill period, NADL will continue to market the Unit for an acceptable drilling contract and JSPL will have the right to sell the Unit at an acceptable price. The Unit will remain at the JSPL yard 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 parties will form a Joint Asset Holding Company for joint ownership of the Unit to be owned 23% by NADL and 77% by JSPL. NADL will continue to market the Unit for the Joint Asset Holding Company for an acceptable drilling contract while JSPL will continue to market the Unit for sale.