Cosco Corp delays delivery of completed rig to August 2017

It was initially scheduled for delivery in 1Q15.

Singapore-listed shipbuilder Cosco Corporation has yet again pushed the delivery date of the harsh environment semi-submersible accommodation rig previously meant for Axis Nova Singapore Pte. Ltd.

In a statement, the group said its subsidiary Cosco Qidong Offshore and Ship Owner Axis Nova have agreed to re-extend the delivery date of the said rig from July 15, 2016, to Aug 20, 2017.

To recall, the rig was contracted in 2012 and was originally scheduled for delivery in 1Q15.

Cosco said Axis Nova can take delivery of the rig any time during the extension period by giving Cosco Qidong not less than 80 days’ prior written notice.

"In the event that the Ship Owner 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," Cosco explained.

With this, the group could not ascertain the financial impact of the agreement, as it is uncertain as to when Axis Nova will take delivery of the rig.