Meet Sembcorp Marine's S$361.7m semi-sub for Prosafe

The new vessel will be named Safe Zephyrus.

According to Nomura, SMM have announced the confirmation of a contract to build a harsh environment accommodation semi-sub for Prosafe AS (PRS NO).

Here's more from Nomura:

This follows the letter of intent (LOI) that had been announced in October. The new contract comes in at USD 295.1mn (SGD 361.7mn), slightly higher than our estimate of USD 290mn and is scheduled for delivery by December 2014.

The new vessel will be built on the GVA 3000E design, a similar design as the first unit Safe Boreas which is currently under construction at Jurong shipyard.

The DP3 unit with capacity for 450 persons will be capable of operating gangway connected in deep water and in harsh environments with a full complement of deck cranes and fire-fighting capabilities.

This is Prosafe’s second accommodation-semi with Jurong Shipyard following the first unit that was contracted in 2011.

According to a press release by Prosafe, the new vessel will be named Safe Zephyrus and overall cost including yard cost, project management; financing and owner-furnished equipment, will amount to USD 350mn. While 20% of the cost will be paid on contract signing, the remaining 80% will be paid at delivery.

Prosafe have also announced receiving bank commitments for a five year post delivery term loan of USD 420mn which will finance Safe Boreas and Safe Zephyrus both. The new facility, with an interest rate of 3 months LIBOR + 2.95%, has a repayment profile of 12 years.

Including the two additional options for newbuilds granted with this contract, Prosafe will now have three options for accommodation semi-subs at Jurong Shipyard.

The additional two options can be designed for the Norwegian continental shelf or world-wide operations outside the North Sea. With an estimated value of ~USD295mn each, these options, if and when exercised, could potentially add ~USD890mn to next year’s new orders.