Axis Offshore holds off newbuild flotel delivery

  • Exploration & Production

Axis Offshore, a provider of flotels servicing the offshore oil & gas industry, has further postponed the delivery of its newbuild flotel Axis Nova that is being built at Cosco’s yard in China.

Following completion of sea trials, the accommodation rig, or flotel, will be laid-up at the yard until August 20, 2017.

The company said on Thursday that it can take delivery of the Axis Nova at any time with short notice.

This agreement is an extension of the current standstill agreement with the yard which expires on September 30, 2016. According to the agreement, signed back in July 2015, Axis partially waived any accrued liquidated damages due to delay. The rig was originally scheduled for delivery in the first quarter of 2015.

The rig owner explained that the new agreement safeguards and strengthens Axis Offshore’s legal position in respect of the excessive delay having occurred in the construction of the Axis Nova, while maintaining commercial optionality through exclusive marketing rights for the vessel.

According to information provided by Axis in November last year, sea trials were supposed to be carried out in late 2015 and the vessel was supposed to be completed in early 2016.

Once completed, Axis Nova will have the 11.5-meter operational air-gap, dynamic positioning systems (DP3) as well as mooring to enable year-round operability in the North Sea. The Axis Nova is based on the GM500A design and it is the first of two units of the same type ordered by Axis Offshore at Cosco’s yard.

Offshore Energy Today Staff

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