Prosafe to sell flotel Safe Lancia for scrap

Prosafe, an owner and operator of semi-sub accommodation rigs, has decided to sell one of its units for scrap after buying two new ones from Axis Offshore. 

Following the completion of the acquisition of Safe Nova and Safe Vega through a deal made with Axis in November 2016, Prosafe has now taken a final decision to sell its flotel Safe Lancia for scrap/recycling. In the last quarter of 2016, the unit was idle and cold-stacked in Texas.

The company said on Thursday that, after buying the Safe Nova and Safe Vega, it will now enter into negotiations with Cosco in China, where the flotels are currently being built, for a workable delivery and commercial solution of the two semi-submersibles that are nearing completion.

If no agreement is made, Prosafe said it has the right to claim cancellation on the newbuilding contracts due to late delivery and claim deposit of $60 million fully secured by Bank of China.

The company also informed that its 1985-built flotel Regalia, which operated for Shell in the UK from the beginning of August until mid-October 2016, is currently laid-up in the UK.

Prosafe had four other flotels idle in the 4Q 2016, the Safe Caledonia, Safe Bristolia, Safe Astoria, and Safe Regency.

Safe Bristolia is cold-stacked in Norway, Safe Caledonia is laid-up in the UK, Safe Regency is laid-up in Curaçao and Safe Astoria is cold-stacked in Indonesia.

Offshore Energy Today Staff

Related news

List of related news articles