The article was updated on April 27, 2020, with a statement by EnQuest which explained that the contract for the Safe Zephyrus had been terminated due to COVID-19-related safety concerns and not due to the low oil price.
Offshore accommodation specialist Prosafe has informed that its Safe Caledonia rig contract with France's Total would be pushed back by one year.
"Prosafe and Total E&P UK Limited have agreed to defer the commencement date for the Safe Caledonia to provide accommodation support at the Elgin complex in the UK sector of the North Sea by one year," Prosafe said Friday.
The contract was expected to begin in the second quarter of 2020, however, this has now been postponed, and the contract is expected to start around late Q1 2021. The term remains as 162 days with one 30-day option.
"In addition, there will be a deferral fee payable by Total," Prosafe said, without providing details on the amount.
Jesper Kragh Andresen, CEO of Prosafe says: “This contract remains important for both Prosafe and Total, even as we face a time of unprecedented challenge."
The news of the contract delay comes just a week after Prosafe said it was in "in dialogue with clients regarding potential temporary off-hire and/or potential contract amendments."
In its market update in March providing info on operations/contracts affected by the COVID-19 virus and the oil price crash, Prosafe said that its Safe Notos and Safe Eurus rigs had been disconnected, with client personnel demobilized. The two rigs are on a 95% stand-by day rate. Both rigs are on contracts with Petrobras in Brazil.
Prosafe then also said that the Safe Concordia accommodation unit was on location and was receiving full day rate, but client personnel was demobilized. The rig is on a contract with Equinor at the Peregrino field in Brazil. The contract is expected to last until May 2020, with an extension option until July 2020.
Prosafe in March lost a three-week contract with EnQuest for its Safe Zephyrus offshore accommodation unit, just days after securing the contract.
The unit was to be used to support EnQuest in the redundant subsea tank removal and safe re-habitation of the Thistle Alpha platform in the UK North Sea in April.
However, on March 20, EnQuest told Prosafe not to mobilize the offshore accommodation unit. Prosafe at the time said it would claim full contract value, of around $2 million.
EnQuest had on March 19 said it reviewed each of its assets and related spending plans in light of the lower oil price environment and elected not to re-start production at the Heather and Thistle/Deveron fields.
In an email to Offshore Engineer, however, EnQuest said that the termination of the contract for a flotel for Thistle was not related to the collapse in the oil price.
"That was not the rationale for abandoning the use of the vessel at that time. The decision was entirely predicated on the need to keep people safe at a time of the international pandemic. The country went into lockdown on March 20 and EnQuest made the decision in order to keep its people, and contractors safe," EnQuest said.