Cosco Corp delays delivery of completed rig

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.

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.