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Marine Log

Sevan drilling unit

March 16, 2007

COSCO to build round rig

COSCO Corporation (Singapore) Limited reports that its 51 percent-owned subsidiary, COSCO Shipyard Group has secured a contract from Sevan Drilling Pte Ltd, a subsidiary of Sevan Marine ASA to build a Sevan drilling unit, based on the proprietary Sevan 650 design, featuring the Sevan cylindrical platform.

The contract is divided into two phases. The first phase of the contract involves the construction of the hull of the rig. The second phase of the contract involves the assembly and outfitting of the drilling unit.

The total contract value will be up to $170 million.

Construction of the rig under the first phase of the contract is expected to be completed by 1st quarter of 2008. The whole turnkey project is scheduled for delivery in the 4th quarter of 2008.

The rig will be equipped to drill wells up to 40,000 feet in water depths of up to 12,500 feet and has an internal oil storage capacity of150,000 barrels of oil.

The rig will be deployed by Petrobas under a 6-year contract with Petrobras America Inc in the U.S. Gulf of Mexico.

The drilling rig will be built at the COSCO's Nantong, China, shipyard.

Mr. Ji Hai Sheng, Vice Chairman and President of the Company and Vice Chairman of COSCO Shipyard Group said, "The cylindrical design of the Sevan drilling rig is a technical challenge. This contract is a vote of confidence in our technical competence and project management capabilities."