Paragon Offshore has announced that a wholly-owned subsidiary of the company has signed an agreement with Shanghai Waigaoqiao Shipbuilding to extend the delivery date for JU-2000E jackup Prospector 7 for twelve months, despite having technically accepted the unit from the shipyard.

The company anticipates that technical acceptance of the unit will occur on or before December 31, 2015. Under the terms of the agreement, no payments are due to the shipyard until the delivery date and upon completion of the delivery protocol.

Paragon Offshore announced the delay as part of its third quarter results, reporting a net loss of $1.08bn. Randall D. Stilley, president and chief executive officer of Paragon, commenting on the result said: “Conditions in the contract drilling industry continued to worsen during the third quarter as customers continued to curtail capital spending in light of low commodity prices.”