Contract done: Sakhalin Energy has convenience terminated its charter of the Safe Astoria
Sakhalin Energy farewells Safe Astoria
Sakhalin Energy Investment Company has convenience terminated the remaining contract duration for Prosafe's Safe Astoria accommodation support rig.
The Safe Astoria has been working off Sakhalin Island and was chartered for a period of about two years from December 2007.
Following the notice of convenience termination, Sakhalin Energy will have to pay Prosafe 85% of the remaining contract value, which will amount to about $21 million.
Prosafe said that, together with reduced operating costs, the convenience termination fee ensures it will incur very little financial impact from the termination.
The convenience termination fee shall be reduced on a pro-rata basis by dayrate earnings from alternative employment of the Safe Astoria solely within the terminated contractual period, Prosafe added.