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Operational update Q1 2018
The fleet utilisation rate in the first quarter of 2018 was 33.3 per cent (Q1 2017: 40 per cent).

The Safe Scandinavia Tender Support Vessel (TSV) was fully contracted in the quarter for Statoil at Oseberg East with a firm contract period until the end of June 2018.

Safe Caledonia is currently laid-up in the UK but will prepare to commence a five-month contract for BP at the Clair Ridge platform in the UK around the end of May.

Safe Notos commenced a three-year and 222-day contract for Petrobras on 7 December 2016 and was fully contracted in the quarter.

Safe Boreas continued the contract with Statoil at the Mariner installation in the UK and was in full operation throughout the quarter. In addition, Statoil can exercise six one-month options for Safe Boreas.

Safe Zephyrus is laid-up in Norway and is scheduled to commence the Johan Sverdrup project for Statoil mid-May 2018 for a firm period of 12 months.

Safe Concordia, Regalia, Safe Bristolia and Safe Astoria were idle in the quarter. Safe Concordia is laid-up in Curacao. Regalia and Safe Bristolia are laid-up in Norway, and  Safe Astoria is laid-up in Indonesia.
The Safe Eurus is in a preserved, strategic stacking mode and negotiations continue with COSCO (Qidong) Offshore Co. Ltd (COSCO} to find a workable commercial solution. Consistent with previous quarters, the company has accrued for lay-up cost for Safe Eurus, 50 percent of such cost to be paid on delivery and the remaining 50 percent after delivery, in accordance with the agreement with COSCO.

Prosafe continues to work with COSCO) to find a workable commercial solution for the three completed vessels that currently reside in COSCO’s Qidong shipyard in China. On 2 April 2018, the standstill agreement between Prosafe and COSCO relating to Safe Nova and Safe Vega was extended until 20 May 2018. Prosafe remains in negotiations with COSCO and related parties for these vessels. If no agreement is reached, Prosafe has the right to cancel the new-build contracts for Safe Nova and Safe Vega due to delay, and claim repayment of the instalments paid including interest of approx. USD 60 million in total. The repayment claim is secured by a refund guarantee from Bank of China.

On 8 March 2018, the Stavanger City Court issued its judgement in favour of Prosafe in respect of the dispute between Westcon Yards AS (Westcon) and Prosafe Rigs Pte. Ltd. relating to the conversion of the Safe Scandinavia into a tender support vessel. The Court ordered Westcon to pay NOK 344 million plus interest and NOK 10.6 million legal costs. There is a deadline of four weeks within which Westcon may file an appeal. Please refer to press release from 20 March 2018 with regards to accounting effects from this judgement. 

Prosafe is a leading owner and operator of semi-submersible accommodation vessels. The company is headquartered in Larnaca, Cyprus and listed on the Oslo Stock Exchange with ticker code PRS.

Larnaca, 18 April 2018
Georgina Georgiou, General Manager
Prosafe SE

For further information, please contact: 

Jesper K. Andresen, CEO
Prosafe Management AS
Phone: +47 51 65 24 30 / +47 907 65 155

Stig Harry Christiansen, Deputy CEO and CFO 
Prosafe Management AS
Phone: +47 51 64 25 17 / +47 478 07 813