Cosco delays offshore rig delivery for one year

Chinese offshore rig builder Cosco has agreed to delay the delivery of a semi-submersible tender assist rig at a request of a client.

In a statement on Friday, Cosco Guandong said it has, with the rig owner, agreed to delay the delivery of the rig until November 30, 2017.

To remind, the Edrill-3 rig, ordered in 2013 by Energy Drilling, was scheduled for delivery in just a few weeks, on November 30, 2016.

“In view of the rescheduling and the uncertainty as to when the owner will take delivery of the rig, it is not possible to ascertain the financial impact of the agreement for rescheduling at this point in time,” Cosco said.

According to a statement by the owner last year, once delivered EDrill-3 will be the largest, most advanced semi-tender in the world capable of operating in a severe environment and equipped to couple with any existing truss spar or tension leg platform (TLP).

In a separate statement on Friday, Cosco Group its the offshore marine business has been adversely affected by current situation of low crude oil prices which has already persisted for a significant period of time.

“For more than two years, the global offshore market has been slowing down significantly. There are still no signs of sustainable improvement,” Cosco Group said.

In line with the difficult situation in the offshore markets, in the past two years Cosco experienced delivery date extensions and order cancellations for several of its projects.

These included extensions for the Sevan Developer rig being built for Sevan Drilling, the jack-up drilling rig being built for KS Drilling, the harsh environment semi-submersible accommodation rig being built for Axis Offshore, the advanced semi-submersible accommodation vessel which is being built for Prosafe.

In addition, the orders for the two floating accommodation units that COSCO Nantong shipyard and COSCO Qidong shipyard contracted to build for the Teekay group have been terminated.

“Some customers have delayed accepting delivery of projects upon completion and it is possible that more customers will seek to delay delivery of projects or seek deferment of payment schedules,“ Cosco said on Friday, adding that this could adversely affect its financials.

Offshore Energy Today Staff