Sevan Drilling and Cosco have agreed to exercise the third six-month option to extend the deferral agreement of the Sevan Developer cylindrical drilling rig to 15 April 2017, delaying the unit an additional six months.
The final delivery instalment has been amended to US$499.7 million, representing 95% of the $526.0 million contract price. Cosco will refund $26.3 million, or 5% of the contract price, plus other associated costs within the Q4 2016.
Other terms and conditions under the deferral agreement dated 15 October 2014, including termination rights, remain unchanged.
Sevan said it continues discussions with Cosco regarding the remaining interest in the Sevan Developer.
In view of the deferment and the uncertainty as to whether the rig owner [Sevan] will take delivery of the Sevan Developer, it is not possible to ascertain the financial impact of the agreement for deferment at this point in time, Cosco said.
The rig was originally expected to be delivered on 30 April 2014.
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