Singapore-listed KS Energy and China’s Shanghai Zhenhua Heavy Industry (ZPMC) have amended the terms of the contract for the delivery of a jack-up drilling rig being built by the Chinese shipyard.
KS Energy, through its offshore drilling subsidiary KS Drilling, ordered the jack-up rig of a Friede & Goldman JU-2000E design from ZPMC in June 2014. The contract also included an option for the construction and delivery of a second rig of the same design.
The first jack-up rig was expected to be delivered twenty seven months after the contract was signed.
KS Drilling now entered into an amendment agreement for the first new rig which is currently under construction.
According to the amendment, KS Drilling will be entitled, at any time, to take delivery of the rig following technical acceptance and prior to December 31, 2018.
In consideration of this deferral, KS also agreed that liquidated damages associated with the contract will only be applicable in the event KS has entered into a drilling contract for the rig on or after July 31, 2017 and ZPMC is unable to meet the requested delivery date.
The F&G JU-2000E is a self-elevating drilling unit designed for all-year, Central North Sea, harsh-environment operation in approximately 400 feet of water.
KS Drilling last month also deferred a newbuild jack-up drilling rig delivery ordered from Cosco Nantong in China citing challenging drilling market conditions.