Cosco cancels rig order

Cosco Singapore shipyard has canceled a $202 million order to build a semi-submersible oil rig hull because Red Flag A.S. of Norway didn?t pay a deposit for the construction to proceed. This raised concern that more clients may be facing higher borrowing costs amid the U.S. subprime mortgage crisis. Cosco Singapore hasn’t received initial payments for 20% of its existing shipbuilding contracts, raising the possibility of more cancellations.