Cosco further extends delivery of two jack-up rigs for Northern Offshore

Cosco (Dalian) Shipyard, subsidiary of Cosco Shipyard Group, has reached an agreement with Northern Offshore to further delay the delivery dates of two jack-up drilling rigs.

The Chinese yard and Northern Offshore have mutually agreed to further extend the rig acceptance date of a first rig Energy Engager to end-September this year, and the second rig Energy Encounter to end-March 2018.

“The owner and Cosco Dalian also agreed to delay delivery of the Energy Engager and Energy Encounter until further notice,” said Cosco Corporation (Singapore) Limited, which controls 51% of Cosco Shipyard Group.

In April 2015, Northern Offshore had negotiated a delay in the deliveries of the two rigs to December 2016 and June 2017.

Cosco Corp said the further extensions were agreed upon taking into account the current unfavourable international marine market conditions. “In view of the rescheduling and the uncertainty as to when the owner will take delivery of the rigs, it is not possible to ascertain the financial impact of the rescheduling at this point in time,” Cosco Corp announced.

The rigbuilding contracts were entered into by the parties back in November 2013.

Posted 07 April 2017

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Lee Hong Liang

Asia Correspondent