Cosco delays delivery of the newbuild drilling rig Sevan Developer yet again

It will refund 5% of the contract price.

COSCO Corp (Singapore) announced that its subsidiary, COSCO Qidong, agreed with Sevan Drilling to exercise the third option to extend the delivery date of Sevan Developer for a further 6 months to 15 April 2017.

Under the terms of this extension, the final payment for the contract has been amended from 90% of the contract price to 95% of the contract price of US$526.0 million (amounting to US$499.7 million).

COSCO Qidong will refund to the rig owner the sum of US$26.3 million (being 5% of the contract price) plus associated costs within the fourth quarter of 2016.

The other terms and conditions under the deferment agreement entered into on 15 October 2014, including termination rights, remain unchanged.

The rig was originally due for delivery in April 2014 but was delayed  due to the absence of equipment from subcontractors. As such, Sevan Drilling and COSCO agreed for 12 months with options exercisable at 6-month intervals, to extend the delivery date up to a total of 36 months from Oct. 15.