Wednesday, June 8, 2016

SembMarine unit extends standstill agreement for drilling rig

Sembcorp Marine's wholly-owned subsidiary Jurong Shipyard has extended a standstill agreement with North Atlantic Drilling to Sept 2, 2016 from the initial deadline in June.

The standstill agreement, which was first announced in December last year, relates to the delivery of a semi-submersible drilling rig known as the West Rigel.

With the extended standstill period, North Atlantic Drilling will continue to market the drilling rig for an acceptable drilling contract, while Jurong Shipyard will have the right to sell it at an acceptable price.

If the drilling rig fails to be employed or sold, North Atlantic Drilling and Jurong Shipyard will form a 23:77 joint asset holding company to jointly own the drilling rig.

Under this circumstance, North Atlantic Drilling will still continue to market the drilling rig for an acceptable drilling contract, while Jurong Shipyard will continue to market it for sale.

In the meantime, the drilling rig will remain with Jurong Shipyard in Singapore.

Shares of SembMarine ended higher at $1.685 on Tuesday.

Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg

0 comments:

Post a Comment