Sevan Drilling and Cosco have agreed to defer delivery of the new-build Sevan Developer cylindrical drilling rig for another six months.
The deepwater unit is being built by Cosco, but has faced construction delays. Meanwhile, Sevan has seen a slowdown in contract awards for deepwater units.
Sevan had agreed a standstill arrangement with Cosco over the rig. In 2014, the two companies agreed to defer the Sevan Developer's delivery date for 12 months with mutually agreed options, exercisable at six month intervals, extending the delivery date for up to a total of 36 months from 15 October 2014.
The original delivery date had been 30 April 2014.
A final delivery installment has been amended to US$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 October 2014, including termination rights, remain unchanged.