SAFE CONCORDIA

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Another Prosafe ship laid up

The offshore accommodation provider Prosafe has laid up another vessel, the "Safe Concordia", as business remained slow for the oilfield services firm. The fleet utilization rate in the second quarter of 2017 was 38.5%, with more than half of the fleet out of action. The 461 bed "Safe Concordia" has just completed operations with Petrobas and is to Curacao for lay-up. In addition the "Safe Zephyrus", "Regalia", "Safe Bristolia" and "Safe Astoria" were idle in the quarter, all of them laid up in Norway, with the exception of the "Safe Astoria" which was being laid up in Indonesia. In mid-June 2017, the "Safe Regency" was sold for recycling to Aliaga for $1.25 million. Following this, Prosafe has scrapped five vessels as part of its strategy to high grade the fleet and protect cash-flow. The TSV "Safe Scandinavia" was fully contracted in the quarter with Statoil. The TSV contract has a firm period until end June 2018. The "Safe Notos" commenced a three-year and 222-day contract for Petrobras on Dec 7, 2016, and was on contract throughout the second quarter. From July 1 the "Safe Notos" was off-hire to allow preventive maintenance and repair of the gangway. The "Safe Notos" recommenced operations with Petrobras earlier this month. The "Safe Boreas" continued the Repsol Sinopec contract in the UK at market adjusted rates through 24 April 2017. After preparation and mobilisation the "Safe Boreas" commenced the 13-month firm period with Statoil at the Mariner installation in the UK in early-August. The "Safe Caledonia" commenced a 134-day plus 30-day option contract with Total in UK in mid-May 2017. Meanwhile the "Safe Eurus" was in a preserved, strategic stacking mode with COSCO (Qidong) Offshore Co Ltd. (COSCO) in China. Prosafe remained in negotiations with COSCO and related parties for a workable commercial solution for the newbuilds "Safe Nova" and "Safe Vega". If no agreement is reached, Prosafe has the right to claim cancellation of the newbuilding contracts due to delay, and claim repayment of the installment paid including interest of approx. $60 million secured by a refund guarantee from Bank of China.