Silicon Investor (SI) -- The First Internet Community

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.

Strategies & Market Trends : Dividend investing for retirement -- Ignore unavailable to you. Want to Upgrade?

To: Sergio H who wrote (10650)	12/29/2011 10:35:03 PM
From: JimisJim	1 Recommendation Respond to of 34328

You make good points... however, the fact is that this deal is a compromise and the words "tender" vs. "platform" are mere semantics... in terms of functionality, there is little difference. I've been in the offshore oil biz for 3 decades and I'm telling you that this is a discount price, and that surprises me wrt SDRL... demand is high for these rigs, supply is low and they make an 18 mo. commitment for something still being built? Jim

To: Sergio H who wrote (10650)	12/30/2011 6:07:51 AM
From: Ditchdigger	Respond to of 34328

Thanks for the SDRL contract input guys. While I'm no driller (I stick to digging), I thought it was a good day rate for a semi-tender rig. SDRL is pushing the use of tenders as an alternative solution, the contract seems to affirm their direction. I'd like to hear more about tender vs semi-tender..thanks ditch "Tender rigs We continue to see strong interest from oil companies for the tender rig concept, which provides a versatile and cost effective alternative to a fixed or floating platform solution. As for the other rig classes, our customers are increasingly focused on utilizing the services of contractors who can provide quality equipment along with operational experience. These factors together with the benefits of newer drilling packages and lighter derrick equipment sets have already resulted in additions to our fleet, backed by attractive term contracts. In addition to the traditional tender rig markets, we continue to see growing interest in this concept from other regions and remain optimistic about the outlook for our existing fleet and the possibility for us to add further capacity to this attractive market segment, which lately has delivered the highest return on investment among our asset classes."