Cosco Corporation (Singapore) Limited (the Company) referred to the announcement made May 30, 2011 in relation to the turnkey EPC (Engineering, Procurement and Construction) contract (the EPC Contract) entered into between Cosco (Qidong) Offshore Co., Ltd (Cosco Qidong) with Sevan Drilling Rig VI Pte Ltd (the Shipowner).
Under the EPC Contract, delivery of the drilling unit Sevan Developer (UDW semisub) 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 Oct. 15. 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.
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