Logitel Offshore, a provider of floating accommodation units known as flotels, has entered into an agreement with COSCO to delay deliveries of two flotels.
First flotel is being delayed for up to 12 months until October 2016 with the ability to take delivery earlier if required, Sevan Marine said in today’s press release.
To remind, COSCO (Nantong) Shipyard has undertaken to build three flotels for Logitel Offshore, established in 2013 by Sevan Marine and CeFront Technology and acquired by Teekay Offshore in 2014.
COSCO already built one flotel for Logitel, named Arendal Spirit. The unit, based on Sevan Marine’s cylindrical design, was delivered in February 2015.
In addition, a postponement of work for 120 days has been agreed between Logitel and COSCO with respect to third flotel, it has been said in Sevan Marine’s press statement.
Sevan Marine added that Logitel’s delay in deliveries will lead to delays in payment to Sevan Marine in relation to these two vessels.
Subject to final review, these factors, combined with the market outlook, are expected to lead to a non-cash impairment in the range of $35 – 40 million in the carrying value of the convertible loan and accrued interest.
Offshore Energy Today reached out to Teekay Offshore seeking confirmation and further details about the delays. We are yet to receive a response.
Update: July 9, 2015
In an e-mail sent to Offshore Energy Today, Teekay confirmed the decision to postpone the delivery of its second unit for maintenance and safety (UMS) under construction at China’s Cosco shipyard.
Teekay’s spokesperson added: “This will give us more flexibility in marketing the units for future deployment.”
Offshore Energy Today Staff