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 rig provider Prosafe is in talks with clients over contract amendments for its flotels. These might see some of the rigs going off-hire.
Prosafe, the world's largest operator of semi-submersible accommodation vessels, said Thursday it was "in dialogue with clients regarding potential temporary off-hire and/or potential contract amendments."
"There are no formal conclusions at this point and Prosafe will provide an update as soon as there is clarity on the situation and any related consequences," Prosafe said.
The company did not provide specifics on which rigs nor which clients were involved in the talks.
Per Prosafe's fleet contract status, last updated on March 16 on its website, the company has contracts and extension options for five rigs. Some contracts are already ongoing, while others have yet to begin. The clients for the five rigs are Shell, Petrobras, Equinor, and Total.
To remind, 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 operation 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 current 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.
The Safe Zephyrus offshore accommodation rig has a firm contract with Shell, expected to start in May, on the Shearwater project offshore the UK.
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 were 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.
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