Flotel contract with Prosafe

January 13, 2006, 13:30 CET

A memorandum of understanding has been signed by Statoil with Prosafe to charter the Safe Scandinavia flotel, initially for use on the Snorre field in the North Sea.

Safe Scandinavia will be used in connection with upgrading work on the Statoil-operated Snorre A platform in the North Sea. The installation is to be made more robust in line with Statoil's and the partners' commitment to mature areas in the North Sea.

The flotel will be in place in the spring of 2007, and the work is expected to take about four months.

In the summer of 2008, it will move to the Sleipner B platform, where it will mainly be used in connection with the compression project on Sleipner West. The facility needs increased compression capacity to combat declining reservoir pressure. Safe Scandinavia will assist on the Sleipner field for approximately six months.

The contract with Prosafe, including options, mobilisation and demobilisation, has a total value of some USD 52 million (just over NOK 350 million).

Both assignments have an option to extend for one month.