NADL further stalls semi-sub rig delivery

Offshore driller North Atlantic Drilling Ltd. (NADL) will not be taking delivery of its newbuild semi-submersible drilling rig West Rigel from Sembcorp Marine’s Jurong Shipyard in Singapore just yet.

The driller and the rig builder have now agreed an amendment to extend the delivery deferral period for the semi-submersible drilling rig to January 6, 2018.

To remind, following several delays, the duo in January entered a standstill agreement and subsequent amendments to defer delivery of the semi-submersible West Rigel. The amendment agreed with Jurong Shipyard in January extended the delivery deferral period to July 6, 2017.

Following the expiration of this deadline, NADL said on Friday that this new extension allows the parties to continue to explore commercial opportunities for the unit.

During the standstill period, NADL will continue to market the rig for an acceptable drilling contract and Jurong will have the right to sell the unit at an acceptable price. The rig will remain at the shipyard in Singapore during this period.

As previously agreed, in the event no employment is secured for the unit and no alternative transaction is completed, the company and Jurong will form a joint asset holding company for joint ownership of the unit, to be owned 23% by the company and 77% by Jurong.

West Rigel is a 6th generation semi-submersible drilling rig. The design is based on Moss Maritime CS60. It is designed to work in both benign and harsh environments and winterized for work in cold climate.

Offshore Energy Today Staff