Safe Boreas accommodation rig - Credit: Prosafe
Offshore accommodation rig provider Prosafe said Monday it has won a contract to supply one of its flotels for work with ConocoPhillips in Norway.
Prosafe, which has this year seen its fleet utilization decimated due to the pandemic, said ConocoPhillips' would use either the Safe Boreas or Safe Zephyrus floatel on its Ekofisk field, starting in the second quarter of 2022.
The contract is related to the tie-in of the Tommeliten Alpha field development, a discovery in the southern part of the Norwegian sector in the North Sea, approximately 25 kilometers southwest of the Ekofisk field. The water depth is 75 meters. The discovery was proven in 1977. The reservoir contains a gas condensate fluid and lies at a depth of about 3,000 meters.
The firm duration of the Prosafe flotel contract is 90 days, with an option of up to 60 days. The total value of the contract, excluding the option period, is approximately $13.6 million.
The contract has cancellation charges that apply if the Tommeliten Alpha plan for development and operation (PDO) is not approved by Norwegian authorities.
Prosafe's accommodation rig fleet utilization rate in the third quarter was 16.4 percent, down from 48.2 percent in the corresponding period of 2019.
In its recent operational update, Prosafe reminded it has been in talks with clients about existing contracts in light of Covid-19 and the oil price collapse and said it had managed to protect its order book by moving contracts from 2020 to 2021 with some further extensions.
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