Sevan Drilling considers cancellation at Cosco Shipyard

Shanghai: Offshore drilling company Sevan Drilling is considering cancelling offshore platform “Sevan Developer” currently under construction at Cosco Shipyard.

The company said in its second quarter report that marketing the platform continues to be a short term challenge for the company.

The contract delivery date for Sevan Developer was April 2014, although the shipyard’s latest indicated date of delivery is October 2014. The main reason for the delay is significant delays in the delivery of critical equipment from Cosco’s sub-contractors.

Sevan Drilling said the delay in delivery means that the company may now be able to cancel the order, or negotiate a later date of delivery with Cosco.

“Given the current market it is, however, doubtful whether a sufficiently long delay in the delivery date can be agreed on satisfactory terms,” Sevan Drilling said in the release. [28/08/14]

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