Prosafe takes delivery of Safe Eurus flotel

Offshore accommodation rigs operator Prosafe has taken delivery of its newbuild unit Safe Eurus from a shipyard in China.

Built by China’s COSCO, the Safe Eurus is an advanced and flexible accommodation rig for worldwide operations, excluding Norway.

Prosafe said on Thursday that the Safe Eurus will shortly begin mobilization to Brazil to start its contract with Brazilian oil and gas company Petrobras.

Prosafe won the contract with Petrobras for the Safe Eurus unit back in May 2019.

The contract is expected to start in the fourth quarter of 2019 with a firm period commitment of three years. This will be the first work for the Safe Eurus. The total value of the contract is approximately $80 million.

The Safe Eurus, a Dynamically Positioned (DP3), harsh environment semi-submersible safety and maintenance support vessel, can accommodate up to 500 persons.

It is worth reminding that Prosafe last year resolved a long-standing issue with the COSCO shipyard where three newbuild flotels were waiting to be delivered – Safe Eurus, Safe Vega, and Safe Axis.

After several delays, the agreement reached between COSCO and Prosafe allowed flexible delivery and long-term financing for all three rigs.

The agreement entailed no lay-up costs for Safe Nova and Safe Vega rigs; a 50/50 profit split between COSCO and Prosafe after repayment to Prosafe of mobilization and stock-up costs of up to $20 million per unit and subject to COSCO receiving the minimum annual amortization payment.

At the time, Prosafe expected to take delivery of the Safe Eurus on December 31, 2019.

As for the Nova and Vega units, one of them will be delivered within three years from the agreement with COSCO, plus one-year option, and the other within five years of the agreement.