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Cosco shipyard delays delivery for two PSVs

Cosco shipyard delays delivery for two PSVs
Cosco (Guangdong) Shipyard and its buyer have agreed to delay the delivery dates for two PSVs, originally scheduled for delivery in early 2014, until June 2016.

The Chinese shipyard, subsidiary of Cosco Shipyard Group, has “significantly completed” the construction of the two PSVs to-date.

“Under the agreement, the shipowner can elect to take delivery of any one or both of the completed PSVs at any time prior to 30 June 2016 (such date may be further extended by mutual agreement of the parties),” said Cosco Corporation (Singapore) Limited, which owns 51% stake in Cosco Shipyard Group.

The two PSVs are part of an order for four PSVs made by the American shipowner back in March 2012. The value of the contract for the four vessels is over $105m.

Two of the PSVs have been delivered on 15 December 2014 and 17 February 2015 respectively.

The Chinese yard said it will refund the shipowner the instalments paid on the PSV, being $5.4m per vessel, in the event that the delivery is not taken.

No reasons were given for the mutally agreed delayed delivery for the PSVs. The OSV market, in its present state, is going through a rough patch as crude oil prices fell, putting downward pressure on rates for rigs reducing their utilisation. In turn, charter and utilisation rates for OSVs have also suffered.