Prosafe scraps more vessels

Norway-based accommodation vessel operator Prosafe has sold another vessel for scrap and is planning to sell off another to the same end. 

Image of the Safe Boreas, from Prosafe.

Prosafe said it had taken the decision to sell the Safe Regency, currently laid up in Curaçao, for scrap "in the near term." It follows the Safe Lancia being sold for scrap in the US last month. The two vessels will take the number of vessels the firm as scrapped to four, as "part of its strategy to high grade the fleet, protect cash-flow and rebalance the market."  

The firm's fleet utilization rate in Q1 was 40%. It currently has five vessels laid up and a sixth "strategically stacked." Prosafe is also seeking work for two new-builds. 

The Safe Boreas continued a contract with Repsol Sinopec (formerly Talisman Sinopec) in UK and was in full operation throughout the quarter. The contract has been extended until 24 April 2017 at market adjusted rates.

The Safe Notos started its three-year and 222-day contract for Petrobras on 7 December 2016 and was on contract throughout the quarter. 

The Safe Concordia was fully contracted in the quarter for Petrobras and continues on short-term extensions at a market adjusted day rate.

The Safe Scandinavia tender support vessel (TSV) was fully contracted in the quarter with Statoil. The TSV contract has a firm period until July 2018.

The Safe Caledonia is undergoing a five-year special periodic survey before commencing a 134-day plus 30-day option contract with Total in UK in mid-May 2017.

The Safe Zephyrus completed a contract with Aker BP in Norway at the end of January and is currently laid-up in the UK.

The Regalia, Safe Bristolia, Safe Astoria and Safe Regency were idle in the quarter. Regalia is laid up in the UK, Safe Bristolia is laid up in Norway while Safe Astoria is laid up in Indonesia. 

The Safe Eurus is in a preserved, strategic stacking mode with COSCO in China. Prosafe remain in negotiations with COSCO and related parties for a workable commercial solution for Safe Nova and Safe Vega. If no agreement is reached, Prosafe has the right to claim cancellation of the newbuilding contracts due to delay and claim repayment of the installment paid including interest of approx. US$60 million secured by a refund guarantee from Bank of China.