In a market where new offshore oil and gas projects have been cancelled or delayed and where units are without employment, an increasingly common strategy for saving existing offshore newbuilding projects is for the shipyard and the buyer to agree to defer delivery of the unit in the hope that the offshore market will improve and that the buyer will be able to secure employment for the unit by the delayed delivery date.
News reports late last year show that a number of shipyards, including the major Korean shipyards, have recently entered into agreements with buyers to delay delivery of offshore units and related vessels.
Excerpted from Inside Oil and Gas. To read the full article, please click here.