Update on Sevan 650 Drilling Unit
The Board of Directors of COSCO Corporation (Singapore) Limited refers to the announcement made on 30 May 2011 in relation to the turn-key EPC (Engineering, Procurement and Construction) contract entered into between COSCO (Qidong) Offshore Co., Ltd with Sevan Drilling Rig VI Pte Ltd.
Under the EPC Contract, delivery of the drilling unit was to take place in the second quarter of 2014. The Shipowner and COSCO Qidong have however agreed to defer delivery date of Sevan Developer for 12 months with options exercisable at 6-month intervals, to extend the delivery date up to a total of 36 months from 15 October 2014. The EPC Contract will terminate at the end of each deferred period, unless extended by mutual agreement between the Shipowner and COSCO Qidong.
It was also agreed that while construction of Sevan Developer continues at COSCO Qidong’s shipyard during the deferred period, the Shipowner is able to continue to market Sevan Developer as part of its fleet.
In view of the deferment and the uncertainty as to whether the options will be exercised, it is not possible to ascertain the financial impact of the agreement for deferment at this point in time.
The Company will make announcements of any significant development in this matter at the appropriate junctures.
