Prosafe Sets New Timeline for Gulf of Mexico Assignment
Posted 20/07/2023 11:56
Offshore accommodation provider, Prosafe, has revealed an updated timeline for the start of its semi-submersible vessel, Safe Concordia's, upcoming assignment in the U.S. Gulf of Mexico. The vessel had been awarded a contract in September 2022 to provide accommodation and construction support in the Gulf of Mexico. The original contract was expected to begin between July and October and last for 330 days, with the possibility of up to 6 months of options. Last month, the start window was amended to August 1st through August 15th, 2023. Now, as the Safe Concordia unit has departed from Curaçao and is en route to the Gulf of Mexico, the start window has been narrowed further to August 5th through August 10th, 2023. The combined mobilization costs and capital expenditure are estimated to be approximately $30 million.
Safe Concordia is a DP2 semi-submersible ASV with 389 (461 with ALQ) beds for operations outside Norway. The vessel was constructed at Keppel FELS shipyard in Singapore and underwent an upgrade in July 2015.
Prosafe's fleet utilization for the second quarter of 2023 was 33.1%, compared to 81% in the same period last year and 28.6% in the first quarter of 2023. The company notes an increase in tender activity in Brazil, with Petrobras issuing three separate four-year tenders. Additionally, Prosafe expects further tenders from Petrobras and other operators in Brazil, with contracts commencing in the second quarter of 2024.
However, contract visibility for 2024 in the North Sea remains limited, though the company has seen an increase in inquiries from potential clients for 2024 and 2025. Prosafe is optimistic about additional tenders and/or direct awards in the North Sea in the coming months.
Prosafe's Safe Notos unit, which started a new four-year contract with Petrobras in July 2022, was off-hire for 31 days for Petrobras compliance works and hull cleaning, resulting in a utilization rate of 64.8% in the second quarter of 2023.
Safe Zephyrus began its 650-day contract with Petrobras in Brazil on April 30, 2023, and has been in continuous operation since. The contract is for a firm period of 650 days and is worth around $73 million, equivalent to $112,500 per day. The unit's utilization level was 68.1% in the second quarter of 2023.
Safe Eurus had a utilization rate of 100% in the second quarter of 2023. The unit is working for Petrobras under a four-year contract from May 2022. The vessel will be off-hire for approximately 35 days in November/December 2023 due to compliance works, hull cleaning, and special periodic survey (SPS) brought forward by Petrobras.
Safe Caledonia is currently laid up at Scapa Flow in the UK pending future work, after completing its contract with TotalEnergies at the Elgin platform in the UK in December 2022. Two other vessels, Safe Boreas and Safe Scandinavia, are also laid up in Norway. Safe Boreas' first right of refusal for use from the third quarter of 2023 to the first quarter of 2024 has expired, making the vessel available to participate in current and upcoming tenders in Brazil and the North Sea.