Total delays Elgin field Floatel until 2021

Total, the French oil company has delayed a contract for the Safe Caledonia to provide accommodation support at its Elgin field in the North Sea.

The contract was due to start in the coming weeks has now been delayed until next year.

Prosafe said the duration of the contract will now begin around late Q1 2021 and runs for 162 days with one 30-day option.

Total will pay a deferral fee for the postponement of the contract.

Jesper Kragh Andresen, chief executive of Prosafe said: “This contract remains important for both Prosafe and Total, even as we face a time of unprecedented challenge.”

The Elgin field was first discovered in 1991 and located around 150 miles east of Aberdeen.

Prosafe is in an ongoing competition clearance process related to the intention to merge with Floatel International.

The news of  the contract delay comes just a week after Prosafe said it was in "in dialogue with clients regarding potential temporary off-hire and/or potential contract amendments."

In its market update in March providing info on operations/contracts affected by the COVID-19 virus and the oil price crash, Prosafe said that its Safe Notos and Safe Eurus rigs had been disconnected, with client personnel demobilized. The two rigs are on a 95% stand-by day rate. Both rigs are on contracts with Petrobras in Brazil.

Prosafe then also said that the Safe Concordia accommodation unit was on location and was receiving full day rate, but client personnel was demobilized. The rig is on a contract with Equinor at the Peregrino field in Brazil. The contract is expected to last until May 2020, with an extension option until July 2020.

Prosafe in March lost a three-week contract with EnQuest for its Safe Zephyrus offshore accommodation unit, just days after securing the contract.

The unit was to be used to support EnQuest in the redundant subsea tank removal and safe re-habitation of the Thistle Alpha platform in the UK North Sea in April.

However, EnQuest then announced cost cuts in response to the oil market situation and said it did not expect to restart its Heather and Thistle/Deveron fields, and it on March 20 told Prosafe not to mobilize the offshore accommodation unit.

Prosafe at the time said it would claim full contract value, of around $2 million.

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