The Sevan Developer was ordered at Cosco in May 2011 and was contracted to be delivered on 30 April 2014. In its second quarter results statement Sevan Drilling said the latest indicated date for delivery from the yard was October 2014 due to significant delays in the delivery of critical equipment from sub-contractors.
“The significant delay in the delivery of the means the company may be able to cancel the order under the construction contract,” it said.
If the newbuilding is cancelled Sevan Drilling said it would entitled to a refund of installments paid during construction, which would be in the region $105m.
Sevan Drilling could also negotiate a later delivery date, however, it said that given the state of the market it was doubtful a sufficiently long delay could be agreed with the company expecting the market to remain challenging in 2015.
At present the company would taking delivery of the rig with employment contract in hand and would have to warm stack the rig until employment is found.
Copyright © 2024. All rights reserved. Seatrade, a trading name of Informa Markets (UK) Limited. Add Seatrade Maritime News to your Google News feed.
