EXHIBIT 10.20(B)
THE EXPORT-IMPORT BANK OF KOREA
[LETTERHEAD]
TO: PETRODRILL SIX Ltd. April 6, 1999
Re: Daewoo Heavy Industries Ltd.'s Hull Number 3016
1. We refer to our irrevocable guarantee No. M0902-804-LG-00057 (the "Refund
Guarantee") in favour of yourselves, Petrodrill Six Limited, for the
account of Daewoo Corporation and Daewoo Heavy Industries Ltd. (the
"Builder") in connection with the shipbuilding contract dated 9th April,
1998 made by and between yourselves and the Builder for the construction and
sale of one Dynamic Positioned Semi-Submersible Drilling Vessel having
Builder's Hull No. 3016. Other terms and expressions employed herein shall
bear the same meaning as in the Contract, a copy of which has been provided
to us.
2. In consideration for your entering into a Main Contract Amendment Agreement
dated 28th January, 1999 between yourselves and the Builder, we hereby agree
that from the date of this letter the Refund Guarantee is amended as
follows:
2.1 The second paragraph shall read as follows:
"Under the terms of the Contract you are to pay to the Builder a
Contract Price, comprising the Construction Price and the Listed Items
Price, for the Vessel as follows:
(a) The Construction Price in five installments as follows:
(i) First Instalment:
Ten Percent (10%) of the Construction Price, being $8,500,000,
shall be paid within three Banking Days of the Effective Date.
(ii) Second Instalment:
Thirty percent (30%) of the Construction Price, being $25,500.00,
shall be paid within three Banking Days from receipt by the
Purchaser of a telefax notice from the Builder attaching a Stage
Certificate in the form of the draft attached as Appendix V,
countersigned by an Authorised Representative (or, in default
thereof, the Classification Surveyor), certifying that it is 6
months after the Effective Date of the contract has taken place.
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THE EXPORT-IMPORT BANK OF KOREA
[LETTERHEAD]
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(iii) Third Instalment:
Twenty percent (20%) of the Construction Price, being $17,000,000,
shall be paid within three Banking Days from receipt by the
Purchaser of a telefax notice from the Builder attaching a Stage
Certificate in the form of the draft attached as Appendix V,
countersigned by an Authorised Representative (or, in default
thereof, the Classification Surveyor), certifying that Keel laying
has taken place.
(iv) Fourth Instalment:
Twenty percent (20%) of the Construction Price, being $17,000,000,
shall be paid within three Banking Days from receipt by the
Purchaser of a telefax notice from the Builder attaching a Stage
Certificate in the form of the draft attached as Appendix V,
countersigned by an Authorised Representative (or, in default
thereof, the Classification Surveyor), certifying that launching
[float out] has taken place.
(v) Fifth Instalment:
Twenty percent (20%) of the Construction Price, together with any
increase or any decrease of the Construction Price arising from
the provisions of Clauses 7 and 16 of the Contract, shall be paid
upon Delivery.
(b) The Listed Items Price in ten instalments as follows:
(i) First Instalment:
Ten percent (10%) of the Listed Items Price, being $5,100,000,
shall be paid on or before 9th June 1998.
(ii) Second Instalment:
Fifteen percent (15%) of the Listed Items Price, being $7,650,000,
shall be paid on or before 26th February 1999.
(iii) Third Instalment:
Five percent (5%) of the Listed Items Price, being $2,550,000,
shall be paid on or before 30th March 1999.
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THE EXPORT-IMPORT BANK OF KOREA
[LETTERHEAD]
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(iv) Fourth Instalment:
Ten percent (10%) of the Listed Items Price, being $5,100,000,
shall be paid on or before 30th May 1999.
(v) Fifth Instalment:
Fifteen percent (15%) of the Listed Items Price, being $7,650,000,
shall be paid on or before 30th July 1999.
(vi) Sixth Instalment:
Ten percent (10%) of the Listed Items Price, being $5,100,000,
shall be paid on or before 30th September 1999.
(vii) Seventh Instalment:
Ten percent (10%) of the Listed Items Price, being $5,100,000,
shall be paid on or before 30th November 1999.
(viii) Eighth Instalment:
Ten percent (10%) of the Listed Items Price, being $5,100,000,
shall be paid on or before 30th January 2000.
(ix) Ninth Instalment:
Ten percent (10%) of the Listed Items Price, being $5,100,000,
shall be paid on or before 30th March 2000.
(x) Tenth Instalment:
Five percent (5%) of the Listed Items Price, being $2,550,000,
together with (or minus) any excess (or shortfall) of the Listed
Items Price over (or under) the provisional Listed Items Price,
shall be paid on or before 30 May 2000.
2.2 In the fourth paragraph, the sum of "US$108,800,000" is deleted and
replaced by the sum of "US$119,000,000."
3. We confirm that, except as expressly amended herein, the Refund Guarantee
remains in full force and effect.
4. The terms of this letter shall be governed by, and construed in accordance
with, English law.
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THE EXPORT-IMPORT BANK OF KOREA
[LETTERHEAD]
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5. Please sign and return the attached copy of this letter to signify your
acceptance of the terms set out herein.
Yours very truly,
For and on behalf of
The Export-Import Bank of Korea
By: /s/ JONG-BOK LEE By: /s/ WON-YOUNG CHUN
Jong-Bok Lee Won-Young Chun
Assistant Manager & Senior Manager &
Loan Officer Senior Loan Officer
/Ship Export Credit Dept. /Ship Export Credit Dept.
We hereby agree to the terms set out herein.
/s/ D LEACH
For and on behalf of Petrodrill Six Limited.