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: marc chatman who wrote (18944)	4/14/1998 2:38:00 AM
From: Douglas V. Fant	Read Replies (1) of 95453

marc, I think that availability is the key- also the costs sunk into a deepwater prospect. You do not want to miss a drilling season window on a deepwater prospect since there are so few rigs available in the world market. So you lock in the deepwater rig for as long as is reasonable considering the day rates. RDC seeking shorter term contracts may not be too far off the mark. About a month ago we tried to bid a three- well package offshore Vietnam to the various offshore drilling companies. Now it wasn't the world's greatest bid package since you'd drill a well wait 30 days (analysis of data), drill another well, then wait 30 days, and then drill the final well. But a firm three-well commitment. Not one service company bid the package! (Noone wanted to move a rig to offshore Vietnam- too busy elsewhere). The best we could do was to get one company that has a rig in the Salkhalin Sea who usually winterizes the rig and stacks it during the winter to agree to move the rig southward and to drill the package. Is business slowing? Maybe- but the service companies seemed only interesting in bidding on their own terms.... Sincerely, Doug F.

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