Strictly: Drilling and oil-field services Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: SliderOnTheBlack who wrote (45116)	5/20/1999 12:57:00 PM
From: Big Dog	Read Replies (2) of 95453

Typically a yard will agree to build a rig at a given price to a certain specification. If there are NO changes, then the yard is usually responsible for delivery of the rig at the agreed price. HOWEVER, it is rare to build a rig without change orders. And shame on ya if you have a rig under construction and want to choose new paper for the dining room. In the case of a conversion -- and that is where most of the big bad overruns have been made -- it is hard to really know what all has to be done until work is under way -- then it's too late, no turning back. A yard will not usually do a conversion for a fixed price. The driller is typically bidding the rig to the operator against a specification. Sometimes the operator will ask for changes/upgrades in which case the amount is pro-rated and added to the day rate. With ref to FLC case on the F-100, I don't know the terms, but I suspect FLC will eat all the overruns and add ons, if any. Insurance? Would you insure that risk? Yards are typically paid as the work is in progress with only 5-10% remaining for payment at delivery. big atoffshore.com

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next