Prosafe Receives LOI for Safe Scandinavia

Prosafe has been awarded a letter of intent by BG International (CNS) Limited for the semisubmersible accommodation/service rig Safe Scandinavia to support the Armada/Maria Development in the British sector of the North Sea.

The contract has a fixed term of 56 days split into two phases: 23 days firm commencing July 12, 2006 and the remaining fixed term conducted in the first quarter of 2007. Options may be available to BG International (CNS) Limited subject to vessel availability.

The value of the contract, including mobilization and demobilization, is approximately US $14.6 million. The contract demonstrates the strong market for this type of rigs, especially in the North Sea. Prosafe has still three vessels available for most of 2007, and is in an excellent position to enjoy a strong market with steadily increasing dayrates.

Prosafe has now secured a fleet utilization of about 92% in 2005. Long-term market prospects for accommodation and service rigs are positive, and the business division has already now secured a fleet utilization of 91% in 2006, 64% in 2007 and 34% in 2008.