Cosco Corporation has quelled analysts concerns that it may lose a $1.05bn contract to build two oil rigs for Sevan Marine, saying that the deal is “effective”. “Deliveries of the drilling units under the engineering, procurement and construction (EPC) contracts are expected to take place in the fourth quarter of 2013 and the second quarter of 2014, respectively,” Cosco Corp said in a statement on Monday. Cosco Corp also pointed out that its building contracts were entered into with subsidiaries of Sevan Drilling, a subsidiary of Sevan Marine. Norwegian oil services group Sevan Marine is currently facing financial difficulties and had cancelled a planned $275m rights issue as it seeks restructuring. Cosco (Qidong) Offshore, subsidiary of Cosco Corp's 51% owned subsidiary Cosco Shipyard Group, had on 24 March this year signed an agreement to build the two drilling units for Sevan Marine. The agreement includes an option for two additional units. Analysts have said Cosco Corp could be affected by Sevan Drilling's inability to continue financing the construction of the rigs, given the difficulties now facing Sevan Marine.