Cosco Mulls Norwegian Turnkey Rig Building Project

Cosco
expects to deliver its first Sevan 650 drilling unit for Norwegian Sevan Marine
this December, Li said today at the sidelines of a financial results briefing
in Singapore.  Sevan recently exercised the options with
Cosco for the construction of the hulls of two drilling units with Cosco.  A formal agreement on the two orders valued
at a combined US$500 million will be signed later this year.  Sevan has also secured six more options with
Cosco.
    Cosco
booked US$93.8 million net profit during the three months ended June 30.  The Chinese shipbuilder’s second quarter
turnover more than doubled to US$0.77 million as compared to the same period
during the previous year.  Offshore
marine engineering including rig building accounts for 16 per cent of the
revenue, while ship conversion projects contribute 29 per cent.
    The
shipbuilder’s outstanding order book stands at US$7.4 billion for progressive
delivery up to 2011, including a fourth floating production storage offloading
conversion project worth over US$60 million for Modec International but excluding
the two Sevan 650 new orders, Li said.
    The
outstanding order book also includes the contract value for MPF-01.  Cosco has received 80 per cent of the payment
from MPF Corp.  The balance 20 per cent
will be realised progressively after Cosco delivered the hull multi-purpose
floating vessel this September.

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