Sevan confirms Cosco options

Cosco Shipyard Group will build two more Sevan 650 drilling units at a combined value of $500 million for Sevan Marine ASA. Sevan has made prepayment of S$7 million to secure the steel materials procurement for the two drilling units. A formal agreement is expected to be signed at a later time.

The two units will be fabricated at Cosco Nantong Shipyard, which is currently building its first Sevan 650 drilling unit contracted in March 2007. Sevan has developed a cylinder-shaped Sevan 650 drilling unit designed for operations in ultra deepwater and all ice-free areas, including the Barents Seas.

The drilling unit will be equipped with 10,000 feet of riser storage, internal oil storage capacity of up to 150,000 barrels of oil and variable deck load of more than 15,000 tonnes. The rigs will be contracted to work for ONGC and Petrobras.

Sevan has six other options with Cosco under separate agreements for six more platforms.