COSCO delays delivery dates for two PSVs

Singapore’s COSCO Corporation has delayed the delivery of two platform supply vessels (PSVs) originally scheduled for delivery in early 2014 until June 30, 2016.

In March 2012, COSCO Guangdong, COSCO Corporation’s subsidiary, signed a shipbuilding contract with an American shipowner for the construction of four UT 771 CDL PSVs at a value of over $105 million in total.

Two of those vessels were delivered on December 15, 2014 and February 17, 2015 respectively.

The company says that, to-date, construction of the remaining two PSVs has been significantly completed.

Under the agreement, the shipowner can elect to take delivery of any one or both of the completed PSVs at any time prior to June 30, 2016.

According to COSCO, in the event that the shipowner elects to take delivery of a PSV, the remaining payment terms under the shipbuilding contract in respect of that PSV will continue to apply.

In addition, in respect of a PSV for which delivery is not taken by the Shipowner, COSCO Guangdong will refund to the shipowner the instalments paid on such PSV (being $5.4 million per PSV) together with interest thereon, and the shipowner will be relieved of the obligation to pay to COSCO Guangdong the remaining payment under the shipbuilding contract in respect of such PSV.