North Atlantic Drilling Ltd. (NADL) has reached a standstill agreement with Singapore’s Jurong Shipyard for the delivery of the sixth generation harsh environment semi-submersible drilling rig, the West Rigel .
The agreement for the semi-sub is effective until June 2016.
The rig was previously slated for delivery in the fourth quarter of 2015, which is a delay from the original plan to be delivered in the second quarter of 2015.
During the standstill period until June 2016, NADL will continue to market the rig for an acceptable drilling contract and the rig will remain at the Jurong Shipyard in Singapore, the company said on Thursday.
Jurong and NADL can also consider other commercial opportunities for the rig during this period, NADL added. 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 rig to be owned 23% by NADL and 77% by Jurong.
NADL says it will continue to market the Unit for the Joint Asset Holding Company.
West Rigel is a 6th generation semi-submersible drilling rig. The design is based on Moss Maritime CS60 and the unit is designed to work in both benign and harsh environments. The unit will be winterized, and suited for work in cold climate.