The contract has an initial fixed term of three months, and can be extended with another three months. The value of the contract, including mobilisation and demobilisation, net of any taxes, is approximately USD 19.6 million. In addition Shell will reimburse any costs related to tow vessels required for Safe Scandinavia's transatlantic voyages.
Safe Scandinavia will start mobilisation for the new contract immediately upon completion of the current contract for ConocoPhillips in the North Sea. The contract is expected to commence around 1 December 2005.
The contract is important as it is the first contract for Prosafe in the US Gulf of Mexico, and confirms the strength of the high end accommodation- and service rig market.
Prosafe has now secured a rig utilisation 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 utilisation of 89% in 2006, 62.5% in 2007 and 34% in 2008.
Prosafe is the world's leading owner and operator of semi-submersible service rigs and a major owner and operator of floating production and storage vessels outside the North Sea. Operating revenues reached USD 470 million in 2004. The company employs approx. 600 people. Prosafe operates in the North Sea, South-East Asia, India, Egypt, West Africa and the Gulf of Mexico. The company is headquartered in Stavanger, Norway. Prosafe is listed on the Oslo Stock Exchange with ticker code PRS. For more information, please refer to www.prosafe.com.
Tananger, 6 October 2005