Cosco Corp's shipyard unit to defer delivery of two jack-ups

COSCO Corporation said a unit of its shipyard subsidiary has agreed with a client to delay the delivery of two jack-up rigs under unfavourable international marine market conditions.

Cosco (Dalian) Shipyard Co, a subsidiary of Cosco Shipyard Co, reached a mutual agreement with Bermuda-based rig owner Northern Offshore Ltd.

The agreement calls for the rig acceptances of two jack-ups, Energy Engager and Energy Encounter, to be extended to the end of September 2017 and the end of March 2018, respectively.

Deliveries of the two rigs will also be deferred until further notice.

Cosco Corp said that it is not possible to ascertain the financial impact of the rescheduling of the acceptances and deliveries of the rigs because it is uncertain when the rig owner will take delivery of the rigs.

Cosco Corp owns 51 per cent of Cosco Shipyard.