Another delay for Prosafe’s three new accommodation rigs

Prosafe, an operator of semi-submersible accommodation rigs known as flotels, has postponed the delivery of three newbuild rigs from a Chinese shipyard. 

Following a delay announced back in April, Prosafe said on Friday it continues to work with COSCO Shipping (Qidong) Offshore to find a comprehensive commercial solution for the three Prosafe units that currently reside in Cosco’s Qidong shipyard in China.

The Safe Eurus is in a preserved, strategic stacking mode and negotiations  continue with Cosco to find a workable commercial solution.

Furthermore, the standstill agreement between Prosafe and Cosco related to Safe Nova and Safe Vega units has recently been extended until May 31, 2018, and Prosafe remains in negotiations with Cosco and related parties for a workable commercial solution for these two units.

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