Prosafe in further flotel talks with Cosco

Prosafe, the Oslo-listed provider of offshore flotels has further extended its standstill agreement for delivery of Safe Nova and Safe Vega accommodation rigs built by Cosco in China.

Three flotels are waiting at the Cosco yard in China to be delivered to Prosafe: Safe Eurus, Safe Nova, and Safe Vega.

In a statement on Thursday Prosafe said the standstill agreement between Prosafe and COSCO for the Nova and Vega has been extended from June 14, 2018, until June 30, 2018.

Prosafe earlier agreed a deferred delivery of flotel Safe Eurus with the Chinese shipbuilder to 4Q 2019, or such earlier time required by the company, back in July 2016. The flotel was originally scheduled for delivery that year.

“The Safe Eurus is in a preserved, strategic stacking mode and negotiations continue with COSCO to find a workable commercial solution,” Prosafe said.

The company said on Thursday it remained in negotiations with COSCO and related parties for a workable commercial solution for Safe Nova and Safe Vega.

Prosafe bought these two accommodation rigs from Axis Offshore in 2016 while they were still being built by the Chinese shipyard.

If no agreement is reached, Prosafe says it has the right to claim cancellation of the newbuild contracts due to delay, and claim repayment of the installments paid including interest of around USD 60 million in total, secured by a refund guarantee from Bank of China.

Offshore Energy Today Staff