Prosafe prepares to receive new accommodation vessels

Prosafe expects to take delivery during 4Q of the newbuild accommodation support vessel Safe Boreas from Jurong Shipyard in Singapore.

Offshore staff

LARNACA, CyprusProsafe expects to take delivery during 4Q of the newbuild accommodation support vessel Safe Boreas from Jurong Shipyard in Singapore. This should give ample time for mobilization of the rig for its first contract which starts in April/May 2015.

Sister newbuild vesselSafe Zephyrus is expected to be ready to start work in the North Sea during summer 2015.

Construction of the Safe Notos and Safe Eurus at COSCO Quidong in China is progressing, and these vessels should be ready for operation during 1Q and 2Q 2016.

However, Prosafe has noticed signs that demand for offshore oil services may tail off. Various oil companies have indicated cutbacks in E&P spending or have introduced cost reduction programs. This will likely impact the company mostly in theNorth Sea, where activity is lower and clients are issuing fewer tenders and enquiries than in the previous three years.

Nevertheless, the long-term drivers for demand in the North Sea remain intact, Prosafe claims, namely aging offshore infrastructure requiring maintenance and modifications combined with prospects for further field developments and related hook-up and commissioning.

Elsewhere, demand for the company’s services remains strong inMexico, with a high level of shallow-water activity and an increased number of drilling jackups under contract. Most accommodation vessels are working in the Cantarell area, but there is potential for assignments in other shallow-water areas.

In the long-term, Prosafe also sees a need for accommodation vessels in Mexico’s deepwater areas with therecent energy reform likely to spur deepwater exploration. This will lead to demand for hook-up and commissioning projects and, ultimately, maintenance and modification work.

As for Brazil, the entry of numerous new suppliers has resulted in a fragmented market, the company adds, with strong competition and only a moderate growth in day rates. But demand is likely to grow and various contracts could be tendered in the coming months.

08/21/2014

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