Contract Extension Confirmed for Safe Caledonia
Ithaca Energy has announced the extension of its contract with Prosafe for the provision of the Safe Caledonia accommodation vessel. The extension involves the exercise of two weeks of options, ensuring the flotel continues to support operations at the Captain field in the UK North Sea until mid-December 2025. This latest extension is valued at approximately USD 1.8 million.
Details of the Extended Agreement
The decision by Ithaca Energy to prolong the charter of the Safe Caledonia underscores the ongoing need for offshore accommodation at the Captain field. Following this exercise of options, Ithaca Energy retains a further ten weeks of options that could potentially extend the vessel's deployment even further.
The initial contract for the Safe Caledonia was formally signed on August 27, 2024, following a Letter of Intent issued in July 2024. That agreement stipulated a firm period of six months, commencing in June 2025, with up to three months of additional options. The original contract's value ranged from approximately USD 26 million to USD 37 million, depending on the exercise of those initial options.
The Safe Caledonia: A Key Offshore Asset
The Safe Caledonia is a semi-submersible accommodation vessel, commonly known as a flotel, designed to provide essential living quarters and support services for offshore personnel. Built in 1982 and subsequently upgraded with a 20-year life extension in 2012/2013, the vessel is equipped with beds for up to 454 persons. It has a long operational history in the UK Continental Shelf (UKCS), having operated continuously in the region for over a decade.
Companies Involved
Ithaca Energy plc is a British-based, Israeli-owned oil and gas company with its headquarters in Aberdeen, Scotland. The company's core business involves the exploration, development, and production of hydrocarbons across the UK Continental Shelf, including assets in the Northern and Central North Sea, and West of Shetland.
Prosafe is a leading owner and operator specializing in semi-submersible accommodation vessels. The company is listed on the Oslo Stock Exchange under the ticker symbol PRS, highlighting its prominent position in the offshore accommodation sector.
5 Comments
Habibi
Maintaining offshore operations is crucial for current energy demands. Yet, it's disappointing to see continued investment in oil and gas infrastructure rather than a decisive shift towards sustainable alternatives.
ZmeeLove
Economic stability for the region; these contracts are vital.
Muchacho
Good to see continued North Sea investment and job security.
Coccinella
It's practical for Ithaca to extend an existing, reliable contract for operational needs. However, the long-term environmental impact of continued North Sea oil extraction remains a significant corporate responsibility concern.
Comandante
This ignores corporate responsibility towards climate change.