COSCO reports on troubled Octabuoy project

COSCO Corp. (Singapore) Ltd, with regard to the vessel building contract for the Octabuoy hull and the topside module secured by COSCO’s subsidiary COSCO (Nantong) Shipyard Co. Ltd with ATP Oil & Gas (UK) Ltd, the COSCO board reports that ATP UK is currently in company voluntary arrangement (CVA) in the UK.

Offshore staff

SINGAPORECOSCO Corp. (Singapore) Ltd, with regard to the vessel building contract for the Octabuoy hull and the topside module secured by COSCO’s subsidiary COSCO (Nantong) Shipyard Co. Ltd with ATP Oil & Gas (UK) Ltd, the COSCO board reports that ATP UK is currently in company voluntary arrangement (CVA) in the UK.

COSCO Nantong has completed construction work of 96% of the hull and 47.96% of the topside module of the project. No additional construction work has been carried out by COSCO Nantong under the project during the CVA proceedings.

ATP UK has made partial installment payments to COSCO Nantong under the vessel building contract, and a part of the variation order remains unpaid.

COSCO Nantong has also informed COSCO that, pursuant to the CVA proposal approved under the legal proceedings in the UK, the vessel building contract would be terminated and such termination would be deemed to be under the default of ATP UK.

Under the CVA proposal, COSCO Nantong shall be entitled to retain any installments paid by ATP UK. COSCO Nantong shall also have full right and power either to complete or not to complete the Octabuoy project as it deems fit, and to sell the project at a public or private sale.

Potential buyers have shown interest in the project. To date, no agreement has been entered into for the sale of the project.

07/22/2014

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