Cosco Delays Delivery of Jack-up Rigs for Northern

Maritime Activity Reports, Inc.

April 9, 2017

Photo: COSCO Shipyard Group

Photo: COSCO Shipyard Group

 Cosco (Dalian) Shipyard, subsidiary of Cosco Shipyard Group, has reached an agreement with Bermuda-based rig owner Northern Offshore to further delay the delivery dates of two jack-up drilling rigs amid challenging offshore drilling market. 

 
Dalian shipyard received an order for two LeTourneau Super 116E jack-up drilling rigs in November 2013 and the plan was to deliver the rigs in 1H2016 and 2H2016, respectively. 
 
According to the new agreement between the Chinese yard and Northern Offshore deliveries of the two rigs will also be deferred until further notice.
 
Cosco Corp said that it is not possible to ascertain the financial impact of the rescheduling of the acceptances and deliveries of the rigs because it is uncertain when the rig owner will take delivery of the rigs.
 
"These extensions were agreed upon taking into account the current unfavourable international  marine market conditions.  In view of the rescheduling and the uncertainty as  to when the owner will take delivery of the  Rigs, it is not possible to ascertain the financial  impact of the rescheduling at this point in  time," said a statement from Cosco.
 
Cosco Corp owns 51 per cent of Cosco Shipyard.
 
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