Prosafe has entered into a turnkey contract for the construction of a semi-submersible accommodation rig at Jurong Shipyard Pte Ltd. in Singapore. The new unit will be the most advanced and efficient harsh environment accommodation rig in the world and will be constructed to comply with Norwegian regulations.
GVA is an experienced designer of semi-submersible rigs and its track-record includes numerous vessels operating in harsh environments. The GVA 3000E design is an enhanced and enlarged version of previous GVA designs and incorporates long operational experience. Prosafe currently has three GVA rigs in the fleet.
Jurong Shipyard is one of the world’s leading constructors of semi-submersible rigs. The yard has to date delivered 13 semi-submersible DP vessels and has three on order. Jurong has delivered a number of other offshore vessels, including vessels designed for operation on the Norwegian Continental Shelf. Prosafe has chosen Jurong Shipyard due to its demonstrated capabilities and strong commitment as a rig builder.
Delivery from the yard is scheduled for the second quarter of 2014 and all-in cost including yard cost, owner-furnished equipment, project management and financing is estimated at USD 350 million. 20 per cent of the yard cost is payable at signing of the contract, while the remaining 80 per cent will be paid at delivery. The investment can be funded over the current balance sheet without impacting the dividend policy. The contract with Jurong also includes options for two more units, valid for approximately 12 and 18 months, respectively.
The new rig is ordered on the back of a positive market outlook. The majority of production installations in the North Sea are in a mature stage. At the same time, many of the larger fields are expected to continue producing well beyond the initial estimated depletion date. This development is supportive for the long-term demand for assets and services related to maintenance, modifications and redevelopments. Furthermore, the recent large discoveries in Norway, combined with continued high exploration effort, indicate strong demand related to hook-up and commissioning activities.
With the addition of the new harsh environment rig, Prosafe reinforces its leading position in the high-end accommodation rig segment, strengthening the company’s ability to meet clients' needs related to increasingly complex operations in a growing market.
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