Prosafe to sell another one for scrap

Prosafe, an owner and operator of semi-submersible accommodation rigs known as flotels, has decided to sell another one of its units for scrap. 

In a Friday operational update for the first quarter of 2017, Prosafe said it has taken the decision to sell the Safe Regency unit for scrap. The flotel, which is currently laid up in Curaçao, will be sold in the near term. The Safe Regency was built in 1982 at the FELS yard in Singapore to a Pacesetter design.

Previously, flotel Safe Lancia was sold for scrap in the U.S. in March 2017. Following this, Prosafe has scrapped four vessels as part of its strategy to high grade the fleet, protect cash-flow and rebalance the market.

The company further said that Regalia, Safe Bristolia, Safe Astoria and Safe Regency were idle in the quarter. Regalia is laid up in the UK, Safe Bristolia is laid up in Norway while Safe Astoria is laid up in Indonesia.

Safe Zephyrus completed the contract with Aker BP in Norway at the end of January and is currently laid-up in the UK.

The Safe Eurus is in a preserved, strategic stacking mode with COSCO in China where it was built.

Prosafe remains in negotiations with COSCO and related parties for a workable commercial solution for Safe Nova and Safe Vega, which were bought from Axis Offshore last year. If no agreement is reached, Prosafe said it 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.

The company’s Safe Caledonia will soon start working for Total in the UK after it completes a five-year SPS. The contract is set to start in mid-May 2017.

Offshore Energy Today Staff