Sembcorp Marine says a standstill agreement has been reached between North Atlantic Drilling and subsidiary Jurong Shipyard for the delivery of the sixth generation harsh environment semi-submersible drilling rig, the West Rigel, until June 2016.
During the standstill period, SembMarine says North Atlantic will continue to market the drilling rig for an drilling contract while Jurong Shipyard will try to find a buyer for the rig.
The unit will remain at the Jurong Shipyard in Singapore during this period.
“In the event no employment is secured and no alternative transaction is completed when the standstill period concludes, the parties have agreed to form a joint asset holding company for joint ownership of the Unit to be owned 23% by North Atlantic and 77% by Jurong Shipyard.
North Atlantic will continue to market the unit for the holding company for an acceptable drilling contract while JSPL will continue to market the unit for sale, adds SembMarine.
In a Wednesday report, OCBC lead analyst Low Pei Han says there was talk that Seadrill was reevaluating the West Rigel rig which it ordered in Apr 2012.
On Tuesday night, SembMarine issued a profit warning, saying it expects to report a 4Q15 net loss and a significant decline in FY15 net profit.
In the statement, SembMarine attributed this to the challenging operating environment and customers deferring or seeking to defer their rig orders.
SembMarine’s PPL Shipyard on Tuesday served a termination notice to Marco Polo Marine’s Marco Polo Drilling (I) and started an action against Marco Polo Marine in the Singapore High Court yesterday.
The move came after Marco Polo Drilling (I) failed to make a second disbursement of US$21.43 million ($30.2 million) -- 10% of the contract price -- by the Nov 30 deadline.
MP Drilling is alleging failure by PPL to comply with certain of its material contractual obligations and that its Nov 17 termination decision took into account various factors including cracks found on all three legs of the new rig during two rounds of tests, even after repair works carried out by PPL after the first round.
SembMarine closed 4.4% lower at $1.97 on Wednesday.
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During the standstill period, SembMarine says North Atlantic will continue to market the drilling rig for an drilling contract while Jurong Shipyard will try to find a buyer for the rig.
The unit will remain at the Jurong Shipyard in Singapore during this period.
“In the event no employment is secured and no alternative transaction is completed when the standstill period concludes, the parties have agreed to form a joint asset holding company for joint ownership of the Unit to be owned 23% by North Atlantic and 77% by Jurong Shipyard.
North Atlantic will continue to market the unit for the holding company for an acceptable drilling contract while JSPL will continue to market the unit for sale, adds SembMarine.
In a Wednesday report, OCBC lead analyst Low Pei Han says there was talk that Seadrill was reevaluating the West Rigel rig which it ordered in Apr 2012.
On Tuesday night, SembMarine issued a profit warning, saying it expects to report a 4Q15 net loss and a significant decline in FY15 net profit.
In the statement, SembMarine attributed this to the challenging operating environment and customers deferring or seeking to defer their rig orders.
SembMarine’s PPL Shipyard on Tuesday served a termination notice to Marco Polo Marine’s Marco Polo Drilling (I) and started an action against Marco Polo Marine in the Singapore High Court yesterday.
The move came after Marco Polo Drilling (I) failed to make a second disbursement of US$21.43 million ($30.2 million) -- 10% of the contract price -- by the Nov 30 deadline.
MP Drilling is alleging failure by PPL to comply with certain of its material contractual obligations and that its Nov 17 termination decision took into account various factors including cracks found on all three legs of the new rig during two rounds of tests, even after repair works carried out by PPL after the first round.
SembMarine closed 4.4% lower at $1.97 on Wednesday.
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
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