Cosco shipyard further delays KS Drilling newbuild jack-up rig

China’s Cosco (Nantong) Shipyard and KS Drilling have agreed to further delay the delivery of a jack-up drilling rig in view of the protracted market slump.

The handing over of the newbuild rig to KS Drilling has been delayed by two years to 31 December 2019 from 31 December 2017, announced Cosco Shipping International (Singapore) Co, majority owner of Cosco Shipyard Group which in turn owns the Nantong shipyard.

“The board wishes to announce that, in light of current unfavourable market conditions and the spirit of the partnership between the parties, the owner and Cosco Nantong have mutually agreed to further extend, by way of a further amendment agreement, the time for delivery of the undelivered rig (…) on mutually agreed terms and conditions,” Cosco Singapore stated.

“The company is not able to ascertain the financial impact of the above amendment at this point in time as there is still no certainty as to how the rig will be eventually dealt with after the further amendment agreement,” it added.

The Chinese shipyard entered into the jack-up construction contract with KS Drilling in May 2011.

Posted 17 July 2017

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Lee Hong Liang

Asia Correspondent