North Atlantic Drilling Ltd. Says that a standstill agreement effective until June 2016 has been reached with Jurong Shipyard (Jurong) for the delivery of the sixth generation harsh environment semi-submersible drilling rig, the West Rigel (the "Unit").
During the standstill period until June 2016, NADL will continue to market the Unit for an acceptable drilling contract and the Unit will remain at the Jurong Shipyard in Singapore. Jurong and NADL can also consider other commercial opportunities for the Unit during this period.
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 Unit to be owned 23% by NADL and 77% by Jurong. NADL will continue to market the Unit for the Joint Asset Holding Company.