Due to the overall sluggishness in the offshore market, China State Shipbuilding Corporation (CSSC) opted to lighten part of the offshore burden of its subsidiary Shanghai Waigaoqiao Shipbuilding (SWS).

Specifically, Shanghai Waigaoqiao will transfer seven jack-up rigs and four platform supply vessels, which are under construction at the shipyard, to Tianjin CSSC CCB Investment Management, an asset management company and another subsidiary of CSSC.

As disclosed, a total contract value is RMB 7.48 billion (around USD 1.13 billion).

SWS was faced with problems of delivery of the newbuildings and this has negatively affected the financial performance of the company, as explained in the statement.

The sale of the aforementioned offshore products comes in an effort to secure delivery of the newbuildings and improve operating results of the shipyard, the company said.