Cosco Corporation (Singapore) Limited (the Company) referred Friday to the announcements made on May 30, 2011, Oct. 17, 2014 and Nov. 2, 2015 in relation to the turnkey EPC (Engineering, Procurement and Construction) contract entered into between Cosco (Qidong) Offshore Co., Ltd. (Cosco Qidong) with Sevan Drilling Rig VI Pte Ltd. (the Rigowner).
As announced by the Company on Nov. 2, 2015, the Rigowner and Cosco Qidong had agreed to exercise the first option to extend the delivery date of Sevan Developer (UDW semisub) for 6-months up to April 15, 2016.
The Board wishes to announce that the Rigowner and Cosco Qidong have agreed to exercise the second option to extend the delivery date of Sevan Developer for a further 6 months of up to Oct. 15, 2016.
Cosco Qidong is required to refund to the Rigowner the sum of $26.3 million (being 5 percent of the contract price) plus interest, by May 25, 2016. The final payment for the contract has also been amended from 85 percent of the contract price to 90 percent of the contract price of $526.0 million (amounting to $473.4 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.
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.
The Company will make announcements of any significant development in this matter at the appropriate junctures.
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