COSCO issues update on builidng contract for one unit semi-submersible accommodation rig
COSCO Corporation (Singapore) Limited refers to the company’s announcements on 2 July 201 5 in relation to the building contract for one unit of Harsh Environment Semi-Submersible Accommodation Rig, signed between COSCO Qidong Offshore Co., Ltd, a subsidiary of the COSCO’s 51% owned subsidiary, COSCO Shipyard Group Co., Ltd, and Axis Nova Singapore Pte. Ltd.
The shipowner and COSCO Qidong have mutually agreed to re-extend the delivery date of the rig, previously scheduled for delivery on 15 July 2016, to 20 August 2017, subject to certain te rms and conditions. Under the agreement, the shipowner can elect to take delivery of the rig (construction of which has now been completed) at any time during th e extension period by giving COSCO Qidong not less than 80 days’ prior written notice.
In the event that the shipowner elects not to take delivery of the rig and exercises its right to cancel the building contract, the shipowner shall not exercise such right prior to 4 August 2017. In view of the rescheduling and the uncertainty as to when the shipowner will take delivery of the rig, it is not possible to ascertain the fin ancial impact of the agreement for rescheduling at this point in time.