Sembcorp Marine: Unit to Sell West Rigel Rig for US$500 Million

By Saurabh Chaturvedi Features Dow Jones Newswires

A unit of Sembcorp Marine Ltd. (S51.SG) agreed to sell a semisubmersible rig to an unnamed buyer for US$500 million.

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The West Rigel rig was built for North Atlantic Drilling Ltd., a 74%-owned subsidiary of Seadrill Ltd. (SDRL).

The rig has been lying idle at a Singapore yard of Sembcorp Marine for last two years as North Atlantic did not take the delivery and got successive extensions from Sembcorp.

Both Seadrill and North Atlantic filed for bankruptcy in September this year.

The original contract value of the order was US$568 million. On Tuesday, Sembcorp Marine said the sale will result in a loss of about S$24 million (US$17.9 million).

Write to Saurabh Chaturvedi at saurabh.chaturvedi@wsj.com

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(END) Dow Jones Newswires

December 25, 2017 20:08 ET (01:08 GMT)