Sevan Drilling Exercises Option to Defer Delivery of Sevan Developer

Cosco Corporation (Singapore) Ltd. reported Monday that Sevan Drilling Rig VI Pte Ltd. has exercised an option with Cosco (Qidong) Offshore Co., Ltd. -- a unit of its 51 percent owned subsidiary Cosco Shipyard Group Co. Ltd. -- to extend the delivery date of the Sevan Developer (UDW semisub) by six months to April 15, 2016.

"Cosco Qidong is required to refund to the Shipowner (Sevan Drilling Rig VI Pte Ltd.) the sum of $26.3 million (being 5 percent of the contract price) plus interest, by Dec. 1, 2015. The final payment for the contract has also been amended from the original 80 percent of the contract price to 85 percent of the contract price of $526.0 million (amounting to $447.1 million) and can be amended further upon the expiration of the option period. The other terms and conditions under the deferment agreement entered into on Oct. 15, 2014, including termination rights, remain unchanged," Cosco said in the press release.

Earlier on Oct. 17, 2014, Cosco Qidong and Sevan Drilling Rig VI Pte Ltd. had agreed to defer the 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, 2014.

"In view of the deferment and the uncertainty as to whether the remaining options will be exercised, it is not possible to ascertain the financial impact of the agreement for deferment at this point in time," Cosco added.

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