Prosafe to lay up two flotels after Pemex suspension?

  • Exploration & Production

Prosafe, an owner and operator of semi-submersible accommodation vessels also known as flotels, has informed that Pemex will suspend a contract for one flotel, and it is also likely the company will suspend a contract for another flotel. 

According to Prosafe’s statement on Monday, Petróleos Mexicanos (Pemex) has been cutting spending in order to adjust the company’s budget to an oil price of $25 per barrel.

Consequently, Prosafe’s Mexican client Cotemar has been directly impacted. This has so far affected three of Prosafe’s vessels.

Prosafe said the company has now been further informed by Cotemar that by mid-March 2016, the 1982-built accommodation vessel Safe Regency will be suspended, and that it is likely that the 1984-built Safe Lancia also will be suspended by Pemex by mid-March 2016.

Prosafe explained that such suspensions will mean that both vessels are likely to be swiftly demobilized to a suitable lay-up location.

The Safe Britannia is currently being demobilized out of Mexico and is available for charter, while the Safe Jasminia and the Safe Hibernia are being prepared for cold-stacking in the US.

The contract for the Safe Britannia ended at the end of 2015, but after that the vessel remained in operational readiness mode in Mexico.

Prosafe announced lay-up plans for the Safe Jasminia in January 2015.

“Relying on the strong working relationship developed over 20 years, Prosafe and Cotemar continue to work proactively together to address the challenges being faced within Mexico and will be well placed to react when the market in Mexico recovers,” Prosafe said on Monday.

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