COSCO shipyard awarded $200m Energy Drilling rig building contract

Includes option for another unit.

In a release, the Board of Directors of COSCO Corporation (Singapore) Limited announced that COSCO (Guangdong) Shipyard Co. Ltd., a subsidiary of the Company’s 51% owned subsidiary, COSCO Shipyard Group Co. Ltd., has secured a contract with Energy Drilling Pte Ltd to construct 1 unit Semi Submersible Tender Assist Drilling Rig (the “Rig”) valued at over USD200 million with an option for an additional 1 unit.

The turn-key contract includes the supply of the DES (Derrick Equipment Set) and the delivery is set for June 2015. The Rig is a GustoMSC Ocean400 TD design equipped to work alongside specialized deepwater trussed spars, tension leg platforms, and compliant towers outside of benign environments and is very well suited to production drilling in shallow water due to its ability to drill and mobilize quickly in adverse weather conditions.

When completed, the Rig will be one of the biggest and most modern semisubmersible tender assist drilling rigs in the market with the largest variable deck load (VDL) of 4,000 MT and the highest air-gap of 10m. The DES is designed to drill on platforms of over 120ft and is equipped with a quad-mast rated for 1,000,000 lbs hook-load.

None of the directors or controlling shareholders of the Company has any interest, direct or indirect in the above contract.

The contract is not expected to have a material impact on the net tangible assets and earnings per share of the Company for the year ending 31 December 2013.