COSCO Inks LOI to Build 2 Sevan 650 Drilling Units

COSCO Shipyard Group has singed a letter of intent with two wholly-owned subsidiaries of Sevan Marine ASA to exercise the options secured earlier to build two Sevan 650 drilling units.

Sevan has made prepayment of USD$7 million to secure the steel materials procurement for the two units under the LOI. A formal agreement is expected to be signed at a later time.

The further two units will be fabricated to COSCO Nantong Shipyard, which is currently building its first Sevan 650 drilling units contracted in March 2007.

Sevan marine has developed a cylinder shaped-Sevan 650 Drilling Units, designed for operations in ultra deep water all ice-free areas including Barents Sea. The Drilling units will be equipped with 10,000 ft of riser storage, internal oil storage capacity up to 150,000 barrels of oil and variable deck load of more than 15,000mt. The rigs are intended for deployment for ONGC and Petrobras S.A.