Cosco Corp. Singapore Ltd. has revealed that its recently announced RMB923 million (US$131.8 million) offshore platform contract is with an American client operating in the U.S. Gulf of Mexico.
The deal involves the construction of a hull for a semisubmersible platform. Construction will take place in Cosco Nantong Shipyard's new offshore construction base in Qidong, with delivery planned for the first half of 2010.
In January, Cosco unveiled plans to construct a new yard in Qidong. Development work on the yard will be carried out in four phases.
The new facility is expected to boast one million square metres (11 million sq ft) of yard space when the first phase of development is complete at the end of 2008.
Expanding Cosco's rig building capacity is a key move for the company given that it recently lost a US$202 million newbuild rig contract with Red Flag A.S.
That was a result of Cosco lacking the capability to deliver the client's new requirement for a turnkey project including a drilling package, Cosco's Vice Chairman Ji Hai Sheng said in an interview with Energy Current.
By acquiring the offshore construction base at Qidong, Cosco aims to build up its capacity to take on such turnkey projects in the future, according to Ji.
Cosco's shares dived more than 15 percent on the Singapore Stock Exchange to S$2.85 (US$2.10) yesterday after the shipbuilder announced the cancellation of the contract
In a statement issued on Wednesday, Cosco said the contract was cancelled because Red Flag failed to pay a contractual deposit. The contract announced last year called on Cosco to construct the hull for a newbuild semisubmersible rig.
The deal involves the construction of a hull for a semisubmersible platform. Construction will take place in Cosco Nantong Shipyard's new offshore construction base in Qidong, with delivery planned for the first half of 2010.
In January, Cosco unveiled plans to construct a new yard in Qidong. Development work on the yard will be carried out in four phases.
The new facility is expected to boast one million square metres (11 million sq ft) of yard space when the first phase of development is complete at the end of 2008.
Expanding Cosco's rig building capacity is a key move for the company given that it recently lost a US$202 million newbuild rig contract with Red Flag A.S.
That was a result of Cosco lacking the capability to deliver the client's new requirement for a turnkey project including a drilling package, Cosco's Vice Chairman Ji Hai Sheng said in an interview with Energy Current.
By acquiring the offshore construction base at Qidong, Cosco aims to build up its capacity to take on such turnkey projects in the future, according to Ji.
Cosco's shares dived more than 15 percent on the Singapore Stock Exchange to S$2.85 (US$2.10) yesterday after the shipbuilder announced the cancellation of the contract
In a statement issued on Wednesday, Cosco said the contract was cancelled because Red Flag failed to pay a contractual deposit. The contract announced last year called on Cosco to construct the hull for a newbuild semisubmersible rig.