Cosco unit inks USD200m contract from Axis Offshore

Cosco Qidong Offshore is set to build one semi-sub rig for Axis.

In a release, the Board of Directors of COSCO Corporation Limited is pleased to announce that COSCO Qidong Offshore Co. Ltd., a subsidiary of the Company’s 51% owned subsidiary, COSCO Shipyard Group Co. Ltd., has secured a contract valued over USD200 million from Axis Offshore, a joint venture between Danish shipowner, J. Lauritzen and Norwegian private equity fund, HitecVision, to build one Harsh Environment Semi Submersible Accommodation Rig.

This rig will be built to Global Maritime’s design, GM500A and will have a capacity of 500 POB, DP3 Dynamic Positioning system and is
designed to operate in the harsh environment in the North Sea. The rig is scheduled for delivery in Q1 2015.

The parties intend that the contract will be made effective within 3 months from the date of signing. The Company will make an announcement when the shipbuilding contract becomes effective.

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 2012.