Sembcorp Marine Announces Standstill Agreement

Sembcorp Marine’s wholly-owned subsidiary, Jurong Shipyard (JSPL), has reached a standstill agreement with North Atlantic Drilling (NAD) for the delivery of the sixth generation harsh environment semisubmersible drilling rig, the West Rigel, until June 2016. During the standstill period, NAD will continue to market the unit for an acceptable drilling contract and JSPL will have the right to sell the unit at an acceptable price. 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, a joint asset holding company will be formed for joint ownership of the unit to be owned 23 percent by NAD and 77 percent by JSPL. Following which, NAD will continue to market the unit for an acceptable drilling contract while JSPL will continue to market the unit for sale.

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