Prosafe Extends Standstill Agreement with COSCO

Prosafe has extended a standstill agreement with COSCO Shipping (Qidong) Offshore Co. Ltd in China for two harsh environment semi-submersible accommodation units, Safe Nova and Safe Vega.

The standstill agreement has been extended until May 21, 2018 as Prosafe continues negotiations with COSCO and related parties for a workable commercial solution for the two units.

A third unit, Safe Eurus, is in a preserved, strategic stacking mode and negotiations continue with COSCO to find a workable commercial solution.

If no agreement is reached, Prosafe has the right to claim cancellation of the newbuild contracts due to delay, and claim repayment of the instalments paid including interest of approximately $60 million in total, secured by a refund guarantee from Bank of China.

Prosafe said it remains focused on its fleet high-grading strategy and continues to work with COSCO to find a comprehensive commercial solution for the three vessels.