• Wednesday, 16 May, 2012

Prosafe wins Yme flotel extension

Extension: Regalia at Yme

PROSAFE

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Steve Marshall , Steve Marshall , Steve Marshall , Steve Marshall

 13 February 2012 08:54 GMT

Norwegian flotel contractor Prosafe has secured a contract extension for its Regalia accommodation platform at the troubled Yme field project, which now looks like it will not be brought online this year as planned.

Canadian operator Talisman Energy has extended the existing contract by another 198 days until the end of August in a deal worth $57.4 million, with a dayrate of $290,000.

As a result, a planned charter of the Regalia for Talisman in the UK sector has been terminated, according to a Prosafe statement.

The latest extension takes the total contract value to $91.4 million for the unit, which has been employed at Yme since November last year on a dayrate of $300,000, and adds further to Talisman’s ballooning costs at the blighted Norwegian project.

The Regalia is one of two accommodation facilities deployed at the field as an army of 400 workers carries out remedial work on the Yme mobile offshore production unit to repair defects uncovered after its delivery from an Abu Dhabi yard by SBM Offshore.

The cost of the Mopu has risen almost threefold from the original estimate of Nkr4.7 billion ($822 million) to around Nkr12 billion while start-up of the field is more than three years delayed and had been expected late in the second quarter.

However, there could be yet further slippage in the schedule due to major hook-up and commissioning challenges – and a new issue with ‘ringing’ – and the Regalia extension suggests Talisman does not expect repair work to be completed anytime soon.

Talisman chief executive John Manzoni told Reuters last week that the field could remain offline throughout 2012.

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