Prosafe assesses options following offshore support slowdown

Offshore staff

LARNACA, CyprusProsafe has initiated a review of its strategic options and funding situation following the continued decline of the offshore oil services market.

The company has also been affected by a further delay in the start-up of its newly converted tender support vessel (TSV) Safe Scandinavia at the Oseberg field offshore Norway; suspension of contracts for accommodation support rigs offshore Mexico (including cancellation of a letter of intent for a new 4.5-year contract valued at $145 million for the Safe Notos); and the unavailability of the bond market as a refinancing source.

Prosafe’s projected capex this year remains in line with previous indications of $700 million, and includes final costs related to completion of the TSV conversion.

The company has been working to optimize deployment and use of its fleet, via measures such as the replacement of Safe Boreas for Safe Notos for Talisman in the UK North Sea.

Prosafe has decided to scrap three of its oldest rigs, the Jasminia, Hibernia and Safe Britannia, and to cold stack others starting with the Safe Astoria. The company remains in dialogue for potential employment of uncontracted vessels, notably Safe Notos.

04/27/2016

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