Daewoo shipyard settles troubled contract with Angolan oil company

Lim Chang-won Reporter() | Posted : December 26, 2018, 12:52 | Updated : December 26, 2018, 12:52

[Courtesy of Daewoo Shipbuilding & Marine Engineering]

SEOUL -- Daewoo Shipbuilding & Marine Engineering (DSME) will deliver two drill ships for Angola's state oil company, Sonangol EP, by the end of March next year under an agreement on its delayed payment that has aggravated the shipbuilder's liquidity woes.

DSME said Wednesday in a regulatory filing that it would deliver the first ship by the end of January and the second by the end of March. The price of each ship was set at $530 million. The agreement came after top Sonangol officials visited DSME's shipyard on the southern island of Geoje in November.

DSME won the $1.24 billion order for two drill ships in 2013 and received 20 percent or $250 million of the total contract value in advanced payment. But delivery has been delayed due to Sonangol's financial problem.

The debt-stricken shipyard, which is still under a rehabilitation program by creditors, has been kept afloat with a massive injection of state money.
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