North Atlantic Drilling (NADL) entered into a standstill agreement, effective until June 2016, with Jurong Shipyard for the delivery of the sixth generation harsh environment semisubmersible drilling rig, the West Rigel.
During the standstill period until June 2016, NADL will continue to market the vessel for an acceptable drilling contract and the West Rigel will remain at the Jurong Shipyard in Singapore. Jurong and NADL can also consider other commercial opportunities for the vessel during this period.
In the event no employment is secured and no alternative transaction is completed when the standstill period concludes, NADL and Jurong have agreed to form a joint asset holding company for joint ownership of the West Rigel to be owned 23% by NADL and 77% by Jurong. NADL will continue to market the vessel for the joint asset holding company.
Illustration of the West Rigel, from Seadrill.