Sevan Developer (COSCO Shipyard Group Co Ltd) (Semisub)

Sevan Developer Delivery Deferral Agreement Second Extension

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15 April 2016

Reference is made to the press release dated 30 October 2015 regarding the Sevan Developer deferral agreement. Sevan Drilling and Cosco have agreed to exercise the second six-month option to extend the deferral agreement to 15 October 2016. The final delivery instalment has been amended to $473.4 million, representing 90% of the $526.0 million contract price and Cosco will refund $26.3 million, or 5% of the contract price, plus other associated costs to Sevan Drilling by 25 May 2016. The agreement can be amended further upon the expiration of the option period. Other terms and conditions under the deferral agreement dated 15 October 2014, including termination rights, remain unchanged.


More News for Operator: COSCO Shipyard Group Co Ltd

22 Sep 2014

Sevan Drilling considering options for delivery or cancellation of 'Sevan Developer'

Sevan Drilling have announced expanded upon the reference to the late delivery of the ‘Sevan Developer’ which the company made within its Q2 2014 earnings release. In the release Sevan Drilling announced that the semisub was originally expected to be delivered on the 30th April 2014 however, delivery was pushed back to October 2014 due to equipment delivery delays from sub-contractors. Sevan Drilling is now considering several options of which cancellation of the contract or negotiating a later delivery date were mentioned specifically. As part of these negotiations, Sevan Drilling has entered into a standstill agreement with Cosco (Qidong) Offshore Co. Limited related to ‘Sevan Developer's’ construction contract. Negotiations with Cosco continue and the Company expects to conclude in the coming weeks.

6 Oct 2014

Sevan extends standstill agreement for 'Sevan Developer'

Sevan Drilling (Sevan) have provided an update to the situation surrounding the delivery of the ‘Sevan Developer’ drilling unit. Sevan and COSCO have agreed to extend the standstill agreement into Q4 2014 in order to allow the companies more time to negotiate a later delivery date as an alternative to contract cancellation. Construction of the asset is continuing at the shipyard.

15 Oct 2015

Cosco agrees to further delay in delivery of 'Sevan Developer'

Sevan Drilling Limited (“Sevan Drilling”) has made reference to a press release dated 16th October 2014 regarding delivery of the Sevan Developer semisub. Sevan Drilling and Cosco have agreed to delay the end of the first deferral period from 15th October 2015 to 1st November 2015 in order to continue negotiations of the first six-month option period.

31 May 2017

Further Delivery Delay for Sevan Developer

Sevan Drilling has further delayed the delivery date of its Sevan Developer cylindrical semisub. The rig is now due to be delivered from the Cosco Nantong shipyard on the 30th June 2017. The rig was originally due to be delivered in the third quarter of 2014 but the market down turn has seen Sevan push this to the right on several occasions.

6 Jul 2017

Sevan Developer Delivery Deferral

Sevan Drilling has announced that is has amended the delivery deferral period for the Sevan Developer cylindrical drilling unit. The rig is now scheduled to be delivered from the COSCO shipyard on the 30 June 2020. Sevan will continue to market the rig during the deferral period.

25 Nov 2013

Sevan Drilling considering not taking delivery of newbuild semisub rig

Sevan Drilling has announced that the rig owner may decide to cancel delivery of the company’s newbuild ‘Sevan Rig No 4’ semisub. The unit which is currently under construction at COSCO’s shipyard in Nantong, China, is being marketed by Seadrill and due for delivery in Q2 2014. However, Sevan Drilling’s board has announced that if the unit is unable to secure a contract before delivery then the company may decide to cancel delivery of the unit, due to the costs that would be associated with accepting it. If a contract is secured the company will accept delivery of the unit.

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