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Acquisition of West Rigel rig from SembMarine-North Atlantic Drilling JV will free up much-needed capital

PC Lee
PC Lee4/10/2017 04:53 PM GMT+08  • 2 min read
Acquisition of West Rigel rig from SembMarine-North Atlantic Drilling JV will free up much-needed capital
SINGAPORE (April 10): An acquisition of the US$568-million ($799-million) West Rigel rig by Transocean will be a huge positive given that the latter is jointly owned by Sembcorp Marine and North Atlantic Drilling (NADL) which is facing bankruptcy risk.
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SINGAPORE (April 10): An acquisition of the US$568-million ($799-million) West Rigel rig by Transocean will be a huge positive given that the latter is jointly owned by Sembcorp Marine and North Atlantic Drilling (NADL) which is facing bankruptcy risk.

On April 4, Seadrill announced it was preparing to implement a restructuring plan which will likely involve schemes of arrangement or Chapter 11 proceedings. It has since been granted an additional three-month extension until end July to implement a restructuring plan.

As a 70.4%-owned subsidiary of Seadrill, NADL is part of any restructuring plan its parent has. In its 4Q16 earnings call, NADL said it was preparing contingency plans, including “potential scheme of arrangements or Chapter 11 proceedings” should a consensual restructuring of Seadrill not be achieved.

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