Efforts by Norsk Tillitsman ASA, trustees of the bonds issued by Petromena ASA, to prevent the sale of PetroRig1 have not been successful. Sembcorp Marine, through Jurong Shipyard, recently obtained an Anti-Suit Injunction restraining Norsk Tillitsman ASA from continuing with the court proceedings in the United States Bankruptcy Court against Jurong Shipyard, whether by themselves, their agents or through PetroRig I Pte Ltd. Following this, Jurong Shipyard settled its disputes with Norsk Tillitsman and PetroRig I Pte Ltd (settlement was recorded by the US Bankruptcy Court) and proceeded to accept the highest bid which it had obtained through the bidding process put in place, resulting in Jurong Shipyard being paid the balance of the construction costs (about 50% of the contract value), all prolongation costs and all costs and expenses owed to it.

In the latest development, Sembcorp Marine announced that it has accepted the bid by Diamond Offshore Drilling Inc to purchase the semisub. This sale is expected to complete by the end of June 2009.

While this episode has seen a few interesting twists, we feel the key takeaways are as follows:
1. Well structured contracts would see the rights of the yard protected. The title of the rig remains with the yard till full payments are received
2. Jurisdiction over such a dispute depends on the counter-party's country of incorporation and may not be easily transferred to another country
3. Demand for modern offshore rigs (with secured contracts) are high despite the current credit conditions