Prosafe loses out in rig conversion appeal

April 15, 2021
Prosafe has suffered an unexpected reverse in a court case concerning an accommodation rig conversion project.

Offshore staff

STAVANGER, NorwayProsafe has suffered an unexpected reverse in a court case concerning an accommodation rig conversion project.

In March 2018 the Stavanger District Court issued judgement in favor of the company in its dispute with Westcon Yards AS concerning the conversion of the Safe Scandinavia to a tender support vessel.

At the time the court ruled that Westcon must pay Prosafe NOK344 million ($41 million) plus interest and NOK10.6 million ($1.26 million) in legal costs. Westcon filed an appeal, and subsequently Prosafe filed a counter appeal in late May 2018.

However, the Gulating Court of Appeal has today determined that Prosafe should now pay Westcon NOK302,510,457 ($36 million) plus interest and legal costs, a total sum of around NOK465 million ($55.5 million).

The judgement implies full payment to Westcon of the amount claimed, and therefore represents a full reversal of the original verdict.

According to Prosafe, a judgement from a Court of Appeal is usually final, so the possibilities for a further appeal appear limited.

CEO Jesper K. Andresen said: “It is difficult to understand how two courts can reach such complete opposite results.”

Prosafe has also issued an update on its support fleet during 1Q 2021.

The Safe Zephyrus has started a 145-day contract for Shell at the Shearwater platform in the UK central North Sea, with an option for the company to extend the term by up to 30 more days.

Late last month the Safe Caledonia started a 162-day campaign for Total at the Elgin platform in the same region, while the Safe Boreas is preparing for a 100-day contract the Buzzard field complex for CNOOC.

The Safe Concordia is preparing for a 117-day contract offshore Trinidad and Tobago, due to start in July. The Safe Scandinavia has been laid up in Norway: earlier this month, Prosafe sold the Regalia.

The company has implemented measures to contain a COVID-19 outbreak on the Safe Zephyrus.

04/15/2021