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Sevan Drilling and Cosco agree further six month delay to rig delivery

Sevan Drilling and Cosco agree further six month delay to rig delivery
Sevan Drilling has agreed a third six-month option with Cosco (Qidong) Offshore to delay delivery of the newbuild drilling rig Sevan Developer.

“The final delivery installment has been amended to $499.7m, representing 95% of the $526m contract price. Cosco will refund $26.3m, or 5% of the contract price, plus other associated costs within the fourth quarter 2016,” Sevan Drilling said in a statement.

The rig was originally due for delivery in April 2014, with the rig originally delayed until October 2014 due to significant delays in delivery of critical equipment from sub-contractors.

This gave Sevan Drilling the right to cancel the rig under the contract and delivery was delayed by 12 months until 15 October 2015. There were a further three options to delay the rig by a six months each, of which the third, and final has now been taken up.