Entrusted by the transferor (the Seller)，we have scheduled to hold a public bidding online（www.shipbid.net）from 16:00 to 16:30 (Beijing Time) on February 9th, 2023.

1. Bidding Object:

“SS PANTANAL”, Deepwater Semi-submersible Drilling Unit ；

IMO No.：8770924；

Class：Bureau Veritas；

Flag：Marshall Islands；

Built Date: November 15th, 2010；

Builder: Yantai CIMC Raffles Shipyard Co., Ltd；

LOA：105.00m; MLB: 73.10m; MLD: 33.99m；

Summer DWT: 16036t；

Light Ship：20663.84t；

GRT/ NRT：24268 /7280；

Upper Deck Dimension: 68.60m×67.10m×8.1m；

Quarters Capacity: 148 man；

Operation Draft: 15.24~16.76m；

Draft-Transit: 7.3m；

Main Engine Power：7*4400kW；

Thrusters Power: 8*2425 kW；

Operation Water Depth: 2400m；

Positioning capability: dynamic positioning DP2, no mooring system；

Maximum Vertical Drilling Depth: 7500m；

Max. Transit Variable Deck Load: 4000t；

Max. Drilling Variable Deck Load: 5500t；

Drilling Displacement: 36415t；

Survival Displacement: 38152t；

All the information and data refer to the rig provided in this Announcement as

well as the attachments are for reference only. If there is any discrepancy, the class certificates and trading certificates and actual condition shall prevail.

Remark: SS PANTANAL was built and delivered by Yantai CIMC Raffles Shipyard Co., Ltd. in November 2010. After delivery, SS PANTANAL was operated in Brazil from 2012 to 2014 and began warm lay-up since 2015. And in March 2021, the rig began cold lay-up after towed from Brazil to Indonesia.  At present, it is cold lay-up at the berth of Sembawang Shipyard, Tanjung Balai Karimun, Indonesia, and COSL Oil-Tech Co., Ltd, a subsidiary of China Offshore Oil Services Co., Ltd is entrusted to manage it during this period. All the machinery and equipments are shut down and some area and tanks cannot be accessed and inspected at present. Besides, it has not been dry-docked since delivery, and the Seller is not responsible for the overall condition and equipments. The Seller does not provide any representation or warranty as to the class status of the rig and the Seller shall not be liable for any consequence in connection therewith.  After auction registration, the bidders shall be deemed to accept the condition of the rig no matter whether they inspect the rig on site or not. 

2. Bidding Rules

2.1 This bidding will be held without a reserved price. If there is only one bidder participating in the bidding, the bidder shall be automatically confirmed as the Buyer upon the completion of the announcing period. If there are two or more bidders participating in the bidding, the transfer of the Vessel will be carried out by auction. No one has the preemptive right to the transfer of the rig.

2.2 The starting price is USD 8 million, and the bidding deposit is USD 0.8 million (or RMB 6 million). Bid increment is a multiple of USD 0.02 million.

2.3 The bidding time will enter into Extension Cycle since 16:25, February 9th, 2023 (Beijing Time) after the bidding officially starts. And then the ending time will be refreshed to 5 minutes once each new bidding price offered.

2.4 If the Buyer pay the deposit in US dollars when apply for the bidding, the deposit shall be automatically converted as part of purchase deposit after the bidding. If the Buyer pay the deposit in CNY, the Buyer shall pay another USD 0.8 million separately to the bidding company’s designated US dollar account within 2 working days after the completion of the bidding. The bidding company shall return the CNY deposit fully back to the Buyer within 1 working day after the receipt of the US deposit.

3. Registration Requirements

3.1 Registration is available from the date of this Announcement and ends on February 9th, 2023 (Beijing Time) before the auction starts (subject to the receipt of bidding deposit, the completion of online registration on the platform and the receipt of the bidding number. It is recommended that bidders pay the deposit 1-2 days in advance in order to avoid any issues). No registration will be accepted after the deadline. After successful registration, the bidders shall be deemed to have fully known, accepted and complied with the contents of this announcement, bidding rules, special provisions and relevant agreements.

3.2 The time of this auction activity shall be subject to Beijing time.

3.3 Any corporation or organization with full capacity for civil conduct and legally existing in and outside the People’s Republic of China may participate in this bidding. 

3.4 The bidders shall not subject to or affected by any sanction, embargoes, freezing provisions, prohibitions or other restriction relating to trading, doing business, investment, exporting, financing or making assets available (or other activities similar to or connected with any of the foregoing) imposed by law or regulation of the United Nations, the People's Republic of China, United States of America and European Union against any state, natural or legal person, body or entity and are capable of making the payments in US Dollars as required under this Agreement（When registration for bidding, the bidders shall provide supporting documents as required by bidding company, and supply additional evidence after bidding as required by the Seller and bidding company ）

3.5 The bidders shall submit the following documents for registration (including but not limited to):

3.5.1 For domestic bidders

l  Copy of Business License sealed with the company chop

l  Copy of Legal Person's ID card sealed with the company chop

l  Power of Attorney (if have), and scanning copy of the authorized person's ID card with the company chop

l  Undertaking for Bidding

l  Bank slip of bidding deposit

3.5.2 For overseas bidders

l  Certificate of Incorporation certified as true copy by the director

l  Articles of Incorporation

l  Copy of Director’s Passport

l  Undertaking for Bidding

l  Bank slip of bidding deposit

4. Date and Place for Inspection of the Rig

Inspection is available at Sembawang Shipyard, Jl. TelukPaku, Kel. PasirPanjang, Kec. Meral Barat 29635, Kabupaten Karimun, Kepulaluan Riau, Indonesia. Any bidders intend to inspect the rig, confirm with the bidding company for details in advance please. The risk and expenses in relation to the inspection shall be borne by the potential bidders. Potential bidders who fail to participate in the on-site inspection yet complete the registration procedure within the prescribed inspection time shall be deemed to have recognized and accepted the condition and defects of the rig.

5. Account of Bidding Company

5.1 USD Acct:

l  Beneficiary: Zhejiang Shipping Exchange Market Co., Ltd.

l  Beneficiary Address: 6th Floor, Zhoushan Bulk Commodity Exchange Center,

No.555 Wengshan Rd, Lincheng Zhoushan Zhejiang Province, P.R.China

l  Account No. : 3309040160000036851

l  SWIFT (Beneficiary Bank): HZCBCN2HZSB

l  Beneficiary Bank: Bank of Hangzhou Co., Ltd, Zhoushan Branch

l  Beneficiary Bank Address: No.619, Dingshen Road, Ganghang Building B Zone,

Zhoushan city, Zhejiang Prov. P.R. China

l  Remittance Reference: SS PANTANAL

 5.2 CNY Acct:

l户名：浙江船舶交易市场有限公司

l账号：3309040160000036844

l银行：杭州银行舟山分行

6. Contacts

Mr. Zhou：+86 18058087036

Mr. Zhang：+86 18058087022

E-mail：auction@shipbid.net

Zhejiang Shipping Exchange Market Co., Ltd.

December 29th, 2022

Article 1 Bidding Rules is made by relevant laws, regulations and policies of the People's Republic of China and with Shipbid practical situations, to standardize the bidding behaviors, maintain an open, fair and equal transaction order, and protect legitimate rights and interests for all the parties involved.

Article 2 The Transaction Rules of the ship bidding (hereafter to be referred as bidding) is suitable for standardizing all the online bidding behaviors. All the parties involved should abide by the Rules and bear legal responsibilities for their own behaviors.Disputes, if any, shall be settled by the parties through friendly negotiation. If the negotiation fails,parties concerned may file a lawsuit with the people's court where the auction organizer (Zhejiang Ship Exchange Market Co.,Ltd) is located.

Article 3 All legal persons or organizations that exist legally can participate in the bidding only if they have the qualifications of the auction announcement except those provided by laws and regulations.

Article 4 The auction information including videos, pictures and written introductions offered by the Seller will be uploaded through the Shipbid system after verified by the auctioneer.

The Seller shall take all the legal responsibilities and economic losses if he provides with fake information.

Article 5 The bidders couldn’t participate in the bidding activities until they register as the buyers through the Shipbid system.  

The username and passwords should be kept safely. If forgotten, bidders could retrieve through the Shipbid system. And if divulged, bidders should login in time to change the passwords.

Article 6 Before submitting the application for the bidding, the bidders should carefully read the auction announcement, ship’s information, transaction rules and other relevant documents, then login the Shipbid system to fill in true and effective information as required.

Article 7 The bidders should submit the applications in accordance with the auction announcement before the Shipbid starts.If legal personalities, natural persons and other organizations need joint-bidding, they should fill in related information and the proportion of capital contribution of each party as required and sign the Joint Bidding Statement.

Article 8 The bidders apply on the Shipbid system by themselves, and pay the deposit either on line or offline. One deposit is only for one lot. And if the bidders want to bid several ships at the same time, corresponding deposits are required.

The bidders are entitled to bid only if the deposit fully paid to the nominated account (based on the arrival time of the deposit ）within the required time. The bidders shall not be eligible for bidding if the deposit is delayed or not fully paid on time.

Article 9 The bidding shall be conducted with time limit. Qualified bidders can participate in the bidding. The initial offer shall not be lower than the starting price and each offer shall be no less than the specified bid increment.

If it is an auction with reserve price, “YES” will be revealed in the system. Otherwise it will display “NULL”.

Article 10 The bidder shall make a cautious bid, and the offer will be irrevocable once submitted.

Article 11 The last limited time of the Shipbid is FIVE (5) minutes. If there is a new bid within 5 minutes countdown, another 5 minutes will be set.

No new offers would be accepted after the final countdown, and the bidding history will be revealed.

Article 12 Once there is/are (a) bidder offer(s) in the Shipbid, the target bidder (hereinafter called the Buyer) shall be confirmed in accordance with the following rules

(1) Where there is no reserve price, the highest bidder would be the Buyer.

(2)Where there is a reserve price, the bidder with the highest offer and not lower than the reserve price would be the Buyer; If the highest offer is lower than the reserve price, the bidding will be pass.

When the time for the bidding is over, the bidding system will be automatically closed.

Article 13 The Buyer should confirm his qualification with the enterprise or individual valid certification to the auctioneer within 2 working days after the bidding. After verification and confirmation, the Buyer should sign the Purchase Confirmation. If the buyer fails to sign the Auction Transaction Confirmation for reasons, the auction result shall not be affected.

If the buyer fails to pass the qualification due to submitting false registration materials, the bidding result is invalid or the buyer breaches the contract, he shall pay the bidding service fee of both the buyers and the sellers; If the price of the re-auction is lower than the transaction amount, the buyer must make up the difference.

Article 14 If the bidding is completed, but the transaction is suspended or terminated, if there is a dispute between the buyer and the seller, the auction deposit shall be properly kept by Zhejiang Shipping Exchange Market until it is paid according to the settlement agreement between the two parties or the effective court judgment or the ruling of the arbitration institution.

Article 15 The payment of balance shall be remitted to the nominated account in time according to the Purchase Confirmation.

Article 16 The Buyer should sign the Sale and Purchase Contract by the Purchase Confirmation with the seller within the required time and make relevant transaction procedures.

Article 17 After paying the balance, the Buyer himself should handover the lot and manage the transaction procedures in time. If the Buyer fails to manage within required time, he himself should pay the costs caused by the delay and afford the consequences of possible damage or losses.

Article 18 The Buyer himself should register the lot and bear all relevant expenses occurred according to the regulations and policies during the transaction procedures.

Article 19 The bidding currency is US dollar. Both the starting price and purchase price do not include the expenses and taxes occurred during transaction procedures.

Article 20 If the bidder obstruct others to bid, manipulate or monopoly the bidding price, or make malicious collusion, the auction will be cancelled once above behaviors are found, and relevant legal responsibility will be borne by the bidder.

Article 21 If the bidder cannot normally login the Shipbid system to apply, offer or bid because of following reasons such as virus invasion, hardware failure, network congestion or passwords forgotten and divulge, etc., he himself should bear the consequences and the bidding will not be suspended.

Article 22 The auctioneer reserves the right to suspend or withdraw the bidding before it starts according to the laws and regulations.

Article 23 The auctioneer reserves the right to suspend or withdraw the bidding if force majeure or accident has caused the online auction to fail.

Article 24 The seller and the auctioneer shall not bear any responsibility for the abnormal service of the website or the interruption of the auction activity due to force majeure or any third party.  After that, the auctioneer will issue a supplementary announcement and explain the reasons for the interruption. A new auction announcement will be issued until the website service returns to normal, and the online auction will be organized and completed according to the new auction announcement. 

Article 25 These rules are general rules for online auction transactions of ships. In case of any conflict with the announcement or agreement of a single item, the terms of a single item shall prevail.

Article 26 If the bidding announcement, additional provision, inspection report or technical status report of the subject object is described and publicized in Chinese and English (or other languages), in case of contradiction or inconsistency, The Chinese version shall prevail.

Article 27 If the person with the right of preemption participates in the bidding, he/she shall submit legal and effective certificates to the auctioneer before the auction begins. After the auctioneer confirms the qualification, he/she can obtain the right of preemption to participate in the bidding. If he/she fails to submit within the time limit, he/she shall be deemed to have given up the right of preemption of the subject matter. 

Article 28 The time concerned in the bidding all depends on Shipbid system service time, except the deposit arriving time which depending on the bank recording time. All the time of information arriving is subject to the time when the information received by Shipbid.

Zhejiang Shipping Exchange Market Co Ltd is responsible for the interpretation of the Rules.

1. This additional provision is a supplement to the bidding announcement and rules, which has the same legal effect.

2. Bidding Object:

“SS PANTANAL”, Deepwater Semi-submersible Drilling Unit；

IMO No.：8770924；

Class：Bureau Veritas；

Flag：Marshall Islands；

Built Date: November 15th, 2010；

Builder: Yantai CIMC Raffles Shipyard Co., Ltd；

LOA:105.00m; MLB: 73.10m; MLD: 33.99m；

Summer DWT: 16036t；

Light Ship：20663.84t；

GRT/ NRT：24268 /7280；

Upper Deck Dimension: 68.60m×67.10m×8.1m；

Quarters Capacity: 148 man；

Operation Draft: 15.24~16.76m；

Draft-Transit: 7.3m；

Main Engine Power：7*4400kW；

Thrusters Power: 8*2425 kW；

Operation Water Depth: 2400m；

Positioning capability: dynamic positioning DP2, no mooring system；

Maximum Vertical Drilling Depth: 7500m；

Max. Transit Variable Deck Load: 4000t；

Max. Drilling Variable Deck Load: 5500t；

Drilling Displacement: 36415t；

Survival Displacement: 38152t；

All the information and data provided in the Bidding Announcement, Special Provision as well as any other channel are for reference only. The bidding object is subject to the condition at the time of delivery. If there is any discrepancy between the actual condition and the information and data above shall not affect the bidding and bidding price. Once the bidding is concluded, the Seller and us shall not assume take any liability for defects or quality problems of the bidding object.

3. After Bidding

3.1 Following a successful bidding, the Buyer shall sign an Auction Confirmation with the Bidding Company and send to Bidding company by email or facsimile on the same day (the “Bidding Day”) . Then deliver the signed original Auction Confirmation to the Bidding Company within two (2) Banking Days after the Bidding Day. And sign the sales and purchases contract (MOA) with the Seller & the escrow agreement within five (5) Banking Days after signing the Auction Confirmation.

3.2 The bidding deposits of the unsuccessful bidders shall be returned within 2 working days after the bidding without interests. The bidding deposit of the Buyer shall be automatically converted as part of purchase fund after the bidding completed and MOA signed without interests.

3.3 It’s acknowledged the interests-free dollar account designated by the bidding company is the escrow account for the Buyer and the Seller to hold and release the funds of the Purchase Price. The escrow agreement shall be signed together with the MOA. After signing the Protocol of Delivery and Acceptance (PODA) & Joint Release Letter, the bidding company shall release all the purchase funds and other delivery monies which received from the Buyer to the Seller within 3 working days without interests. The bidding company shall not charge any additional fee for the escrow service of funds. 

3.4 If the Buyer is unable to pay dollars directly to the escrow account designated by our company, they can choose lawyer supervision or other payment methods under the consent of the Seller, and the cost incurred shall be borne by the Buyer.

4. Transfer (Deletion) and Delivery of the Rig

4.1 The Buyer shall pay all the bidding service fee not later than 16:00 February 13th, 2023(Beijing Time) and remit the balance of the Purchase Price and other delivery monies (if any) to the escrow account nominated by the Seller, at least TWO (2) banking days prior to the Rig’s expected delivery date. Any delay or failure to pay fees mentioned above shall be deemed as a breach of the Bidding Announcement and the MOA.

4.2 The original owner (as the Seller) should complete all the deletion procedures relating to the rig within 10 banking days after signing PODA.

The earliest delivery date: February 20th, 2023;
Cancelling Date: March 30th, 2023.
If, for any reason related to the COVID-19 (Coronavirus) outbreak, or other epidemic, pandemic or infectious diseases or other force majeure at the place of delivery, as declared by the World Health Organization or any local government, delivery of the Rig becomes impractical or impossible by the Cancelling Date, The Seller and the Buyer shall mutually discuss and the delivery may be extended accordingly.

4.3 Delivery Place: The rig shall be delivered and taken over on an "as is where is" basis, as she is and where she is at the time that the Buyers take delivery at Sembawang Shipyard, Jl. TelukPaku, Kel. PasirPanjang, Kec. Meral Barat 29635, Kabupaten Karimun, Kepulaluan Riau, Indonesia.

The Seller shall not be responsible for any time and cost for the Buyer to take delivery of the rig which shall be for the Buyer's account.

Once the bidders complete the online registration and participate in the auction, shall be deemed to have recognized and accepted the condition and defects of the rig, including but not limited to all known and unknown defects related to the rig certificates and the condition, etc. The bidders shall not object to any defects, such as the quality, of the rig for any reason. The Buyer shall be deemed to have confirmed to accept the condition if they did not inspect the rig.

4.4 The sales and purchases contract (MOA) shall be signed as attached. In principle，no modification of the MOA will be allowed, except filling with the necessary information (e.g. Buyers' information, purchase price, signing date, etc.), or others terms mutually agreed between the Seller and the Buyer. In the event of any conflict or ambiguity between MOA and this public auction regulations (including the bidding Announcement, bidding rules, special provision, etc), the terms in such public notice shall prevail.

If the Buyer fails to sign the auction confirmation or the MOA as scheduled, it shall be deemed as breach of “Undertaking for Bidding”, and the Seller has the right to confiscate all the bidding deposit. Zhejiang Shipping Exchange Market Co., Ltd. shall have the right to re-organize the bidding activity for the rig against the instructions of the transferor.

4.5 After the auction, the list of handover documents and requirements of the Buyer and the Seller are detailed in the MOA.

5. Related expenses

5.1 Bidding service fee: After the bidding, the Buyer shall pay bidding service fee to the bidding company. The service fee rate shall be referred to UNDERTAKING for BIDDING as attached in the Bidding Announcement.

5.2 The bank charges related to the bidding deposit shall be borne by the bidders; and the bank charges related to the purchase price shall be borne by the Buyer.

5.3 The Seller would provide with Commercial Invoice of the Purchase Price excluding VAT invoice. All the taxes, expenses and costs incurred after the rig delivery shall be borne by the Buyer themselves.

5.4 The delivery time of the rig shall be subject to the signing time of the PODA. The rig with everything belonging to her shall be at the Seller's risk and expense until she is delivered to the Buyer, while the rig’s risk and expenses shall be for the Buyer's account after the delivery under this Agreement.

6. This Announcement is described in both Chinese and English. In case of any discrepancy between the two languages, Chinese version shall prevail.

7. Matters not covered herein shall be settled through negotiation at good faith by the bidding company, the Seller and the Buyer.

Zhejiang Shipping Exchange Market Co., Ltd.

December 29th, 2022

shipstatus_SS_PANTANAL.pdf

SS_PANTANAL MOA.pdf

SS_Pantanal_-_MOA_Addendum.pdf

Undertaking for Bidding-SS PANTANAL.pdf