KS Drilling further stalls jack-up rig delivery

Singapore’s offshore driller KS Drilling and China’s rig builder COSCO Nantong have agreed to further postpone the delivery date for a jack-up drilling rig by two more years. 

KS Drilling entered the contract with COSCO Nantong to build two jack-up drilling rigs based on the LeTourneau Workhorse Class design in May 2011. The first rig was delivered in 2014 but the driller and the builder have been stalling with the delivery of the second one for a while now.

Following the expiry of the latest option, COSCO said on Friday that, in light of current unfavorable market conditions and the spirit of the partnership between the parties, the Owner and the shipyard have mutually agreed to further extend, by way of a further amendment agreement, the time for delivery of the undelivered rig bearing hull number N408, which is ready for delivery.

The extension is from December 31, 2017 until December 31, 2019, based on mutually agreed terms and conditions. The rig builder added that either party remains entitled to sell the rig to a third party.

Offshore Energy Today Staff