Prosafe: Robust Demand for Accommodation Rigs

Prosafe, the Norwegian semisub accommodation/service vessel operator, reported Thursday that the demand outlook for offshore accommodation remains robust.

Reporting its results for the second quarter of 2013, the firm added that it is confident that of more contracts in coming months after its Safe Bristolia accommodation vessel commenced a 173-day contract with Elf Exploration in the UK in May and its Regalia rig began a 180-day contract with Norske Shell at the Draugen facility, Norway, in April. Prosafe said that Shell recently exercised a one-month option that extended the Regalia's contract until October this year.

Meanwhile, the Safe Caledonia is currently operating for BP in the UK North Sea until the end of March 2014, before going on to operate for Nexen. In Brazil, Safe Concordia is operating for Petrobras on a contract until June 2014.

The Safe Astoria is currently idle and is at a yard in Batam, Indonesia. The vessel has an 11 month-plus contract with Shell Philippines, beginning next summer.

Prosafe also reported that five of its vessels are on bareboat charters in Mexico for ultimate use by national oil company Pemex.

Prosafe said that a combination of maintenance and modification projects, as well as new developments, meant the market for offshore accommodation in the North Sea has been growing and the demand outlook there remains strong.

In Brazil and Mexico, there are a number of opportunities and tenders for long-term requirements, mainly driven by maintenance and improved oil recovery projects. But Prosafe added that the number of suppliers to the industry has increased and competition is strong, particularly in Brazil.



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