We’re being paid: COSCO

The shipbuilder clarified their vessel building contracts were entered into with subsidiaries of Sevan Drilling and not with its financially struggling parent Sevan Marine.

In a statement COSCO said, "The payments from the Sevan Drilling group of companies in connection with the contracts stated above have, to-date, all been made in accordance with the payment schedules applicable to the respective contracts.”

Meanwhile COSCO Qidong, a subsidiary of COSCO Shipyard Group Co Ltd, has made effective formal agreements with Sevan Drilling Rig V Pte Ltd and Sevan Drilling Rig VI Pte Ltd. COSCO Qidong will undertake to perform engineering, procurement and construction (EPC) and installation for delivery of two drilling units based on the Sevan design. The contract price for each drilling unit is approximately $525 million.

Deliveries of the drilling units under the EPC contracts are expected to take place in the fourth quarter of 2013 and the second quarter of 2014, respectively.