Strictly: Drilling and oil-field services Message Board

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Gold/Mining/Energy : Strictly: Drilling and oil-field services

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To: Lazlo Pierce who wrote (6731)	1/6/1998 3:12:00 PM
From: Czechsinthemail	Read Replies (3) of 95453

The news on the RIG decision to discontinue contract drilling is likely good news that looks like bad. The turnkey operations were likely negotiated when dayrates (and drilling costs) were considerably lower. While taking a $12.6 million loss on turnkey operations in the 4Q is not a joy, the decision to discontinue turnkey operations may be largely a reflection of the greater profits to be gained on standard dayrate contracts. RIG may be opting for the sure thing in high dayrate contracts for their fleet. If so, that would be good news for RIG and other drillers. Baird

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