Prosafe narrows down start-up date for vessel’s Gulf of Mexico job

Offshore accommodation provider Prosafe has disclosed a new timeline during which one of its semi-submersible vessels, which is currently on its way to the U.S. Gulf of Mexico, is expected to kick off its pending assignment.

Back in September 2022, Prosafe got a letter of award (LOA) to provide accommodation and construction support using the Safe Concordia unit in the Gulf of Mexico. The contract for the work covered by the LOA was inked the following month.

At the time, the contract was expected to start within a window of July through October and take 330 days with up to 6 months of options. The commencement window, which was July through September 2023, was amended last month to 1 August through 15 August 2023.

As the Safe Concordia unit has departed from Curaçao and is in transit to the Gulf of Mexico for its upcoming contract, the start window for the contract has been narrowed further to 5 August through 10 August 2023. The combined mobilisation costs and capex is estimated to be within the previously communicated range and approximately $30 million.

Safe Concordia is a DP2 semi-submersible ASV with 389 (461 with ALQ) beds for worldwide operations excluding Norway. The vessel was constructed at Keppel FELS shipyard in Singapore and delivered in March 2005. An upgrade was completed in July 2015.

According to Prosafe, its fleet utilisation for 2Q 2023 was 33.1 per cent, compared to 81 per cent in 2Q 2022 and 28.6 per cent in 1Q 2023. The company highlights that tender activity is increasing in Brazil, as Petrobras has issued three separate four-year tenders. The firm also expects further tenders in Brazil from Petrobras and other operators with contracts starting from 2Q 2024.

On the other hand, Prosafe points out that contract visibility for 2024 – after recent awards – in the North Sea continues to be limited. However, the company is seeing an increase in inquiries from potential clients both for 2024 and 2025, thus, the firm remains 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 on 18 July 2022 in direct continuation of the previous contract, was off-hire for 31 days for Petrobras compliance works and hull cleaning. The vessel’s utilisation was 64.8 per cent in 2Q 2023.

Furthermore, Safe Zephyrus started its 650-day contract with Petrobras in Brazil on 30 April 2023 and has been in continuous operation since. The signing of the deal for this vessel was revealed in December 2022. 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 utilisation level was 68.1 per cent in 2Q 2023.

On the other hand, Safe Eurus’s utilisation was 100 per cent in 2Q 2023. This unit is working for Petrobras, thanks to a four-year contract from May 2022. As the Brazilian giant previously requested to bring forward the compliance works, hull cleaning, and special periodic survey (SPS) from 1Q 2024 to November 2023, the vessel will be off-hire for approximately 35 days in November/December 2023.

Meanwhile, the Safe Caledonia unit is laid up at Scapa Flow in the UK pending future work, after completing its contact with TotalEnergies at the Elgin platform in the UK on 2 December 2022. Two more vessels are currently laid up in Norway. These are Safe Boreas, which is laid up pending future work, and Safe Scandinavia, which is being marketed broadly.

According to Prosafe, the first right of refusal previously communicated for the use of Safe Boreas from 3Q 2023 to 1Q 2024 has expired, thus, the firm retained a $1.8 million fee. The vessel is, therefore, available to participate in current and upcoming tenders in Brazil and the North Sea.