Prosafe orders second harsh environment accommodation rig

Monday, Nov 19, 2012

Reference is made to announcement of 4 October 2012 regarding Letter of Intent with Jurong Shipyard Pte Ltd. (“JSPL”) in Singapore for the construction of a second harsh environment semi-submersible accommodation rig. Prosafe has now entered into a firm turnkey contract with the yard. Delivery of the rig, which will be named Safe Zephyrus, is scheduled around year-end 2014.

With a similar design as the Safe Boreas, which is presently under construction at JSPL, the new unit will be the world’s most advanced and versatile accommodation unit, constructed to comply with Norwegian regulations and capable of operating in the harshest environments and with the highest standards of safety.

As the Safe Boreas, the new unit will be constructed according to the GVA 3000E design and equipped with a DP3 (dynamic positioning) system as well as 12-point mooring arrangement. This will allow for operations in both DP and anchored mode, providing maximum cost efficiency and flexibility. The unit will have the capacity to accommodate 450 persons in single man cabins.

Cost including yard cost, owner-furnished equipment, project management and financing is estimated at around 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.

Prosafe has received bank commitments for a five-year post delivery term loan facility of USD 420 million to finance both Safe Boreas, and the new unit. The facility has an interest rate of 3-months LIBOR + 2.95 per cent and a repayment profile of 12 years. Closing is anticipated to take place in December.

JSPL has also granted options for two additional new builds. The additional two options can be designed for either the Norwegian Continental Shelf or for world-wide operations outside the North Sea. In addition, Prosafe has an outstanding option from the first new build contract that was signed in December 2011, and has thereby in total options for three further new builds at JSPL.

Source: Prosafe

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