Prosafe Wins Bid for 650-day Offshore Accommodation Deal with Petrobras. Eyes More North Sea Work

Monday, November 28, 2022

Prosafe, an Oslo-listed provider of offshore accommodation rigs for the energy industry, said Friday it had been selected as the winning bidder for a 650-day firm period contract by Petrobras using its Safe Zephyrus rig, starting in May 2023. 

The contract value is approximately $73 million (equivalent to USD 112,500 per day). The final contract award and start remain subject to contract. Prosafe expects the final contract award prior to year-end 2022. The news follows Prosafe's statement from October, when the company said it had submitted the most competitive offer in a bidding process for a 650-day contract with the Brazilian oil and gas company Petrobras. 

Prosafe expects Safe Zephyrus to complete its contract with BP at ETAP in the UK North Sea on December 21, 2022, after which preparations and mobilization for the contract with Petrobras will begin.

Safe Caledonia has been operating for TotalEnergies at the Elgin platform in the UK since March 7, 2022. The vessel is expected to complete its contract on December 2, 2022, after which it will be laid up pending future work.

Safe Boreas completed a contract to support a platform shutdown in the UK North Sea on November 1, 2022, and is now laid up in Norway pending future work.

On May 25, 2022, Safe Eurus was awarded a four-year contract with Petrobras, with planned start-up in Q1 2023, following on from the expiry of the current contract. 

Safe Eurus is expected to be off hire for 30 days in April 2023, during which period Petrobras contract modification work and hull cleaning will be conducted. 

Prosafe also intends to advance and conduct the SPS originally scheduled for 2024 for Eurus during the same off-hire window, avoiding the need for a further off-hire period in 2024.

Safe Notos started a new four-year contract with Petrobras on July 18, 2022, in direct continuation of the previous contract. Safe Notos is expected to be off hire for 30 days either in February or May 2023 during which Petrobras contract modification and hull cleaning will be conducted.

Safe Concordia is now laid up in Curaçao pending the start of the upcoming project in the US Gulf of Mexico. The firm duration of the contract, commencing within a window of July through October 2023, is 330 days with up to 6 months of options. The value of the contract firm duration is approximately USD 33 million. 

A standby rate of USD 28 thousand per day has been agreed for the period from August 1, 2023 until the start latest October 31, 2023. The value of the 6 months options is USD 19 million.

The Safe Scandinavia is laid up in Norway and is being marketed broadly, Prosafe said.

Prosafe is currently not participating in any ongoing tenders in Brazil. In the North Sea, Prosafe is participating in the following tenders:

Year       Firm Duration              Option(s)          Region              Expected competition
2023       8 months                    1 month            Denmark           Walk-to-work
2024       10 months                  6 months          Norway             Semi-submersible/Jack-up
2024       4 months                    4 months          UK                    Semi-submersible
2025       3 months                    2 months          North America   Semi-submersible
2026       7 months                    6 months          Norway             Semi-submersible
2026       7 months                    6 months          Norway             Semi-submersible

Categories: Energy Vessels North Sea Industry News Activity Europe South America People & Companies

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