Cosco Corporation Singapore pushes back rig delivery date (Video)

By Vessels

Shipbuilder Cosco Corporation (Singapore) said on Friday that it will delay, once again, the delivery date for a completed US$200-million accommodation rig previously meant for Axis Offshore, a Danish-Norwegian joint venture.

The delivery date has been pushed back another year from July 15, 2016, to Aug 20, 2017, Cosco said.

Cosco Corporation Singapore pushes back rig delivery date (Video)

Shipowner Axis Nova Singapore can take delivery of the rig any time during the extension period by giving Cosco Qidong, a Cosco indirect subsidiary, at least 80 days' written notice.

If Axis Nova decides not to take delivery, the right to cancel the building contract cannot be exercised before Aug 4, 2017.

It is not possible to ascertain the financial impact of the agreement for rescheduling at this point in time, Cosco said.

The harsh environment, semi-submersible rig, called the Axis Nova, was contracted in 2012 and originally scheduled for delivery in the first quarter of 2015. In July 2015, the delivery date was pushed back to July 2016.

Cosco last traded unchanged at S$0.265 a share.

The semi-submersible flotel Axis Nova, which is under construction at Cosco Shipyard, is based on the GM500A design compliant with Norwegian rules including noise & vibration, natural daylight, ventilation, working environment, and free-fall lifeboats. It has 11.5 meter operational air-gap, powerful DP3 setup and mooring system to ensure year-round operability in all areas of the North Sea. Axis Nova is targeted for the strong demand for modern flotels to operate in the harsh environment of the North Sea, especially in the Norwegian and UK sector with emphasis on high safety standards and comfortable solutions for offshore accommodation for up to 500 crew and guests.

More information about Axis Nova / Axis Vega - GM500 Harsh-Environment Semi-Submersible Floatels please find in the video below:

Source: Business Times Singapore