BP to Pay Record Price for Drillship

Monday, April 17, 2006
BP reportedly agreed to pay more than $500,000 a day to secure the continued use of a drillship in the Gulf of Mexico, according to a report on www. Business.timesonline.co.uk. From December next year, BP will pay a day rate of $520,000 (£297,000) to charter the Discoverer Enterprise, almost three times more than it pays at present for the use of the ship. The surge in price reflects a desperation among oil explorers to retain control of scarce resources, essential if the companies are to meet their own oil production targets. A shortage of drilling rigs is delaying exploration programs in the North Sea while a surge in drilling activity in the Middle East is driving up the costs offshore of Texas and Louisiana as the newly rich state-owned oil companies of the Gulf compete with U.S. multinationals for the latest technology. Shortages in labor and equipment are causing concern that the scheduling of major projects will be affected and badly needed additions to global hydrocarbon output will be delayed, further increasing the upward pressure on oil and gas prices. Cost escalation has already plagued two big Arctic liquefied natural gas projects: Shell’s Sakhalin II, where costs have doubled to $20 billion, and Snohvit, the Norwegian project managed by Statoil, where delays have wreaked havoc with budgets. While the oil multinationals struggle to keep their projects to budget, oil service and contracting companies are making record profits out of the industry’s growing dependence on technology and equipment suppliers. (Source: www.business.timesonline.co.uk)
Maritime Reporter September 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds


Seadrill Hopes to See Market Turn in 2017

Offshore rig driller Seadrill is facing another two years in the doldrums but hopes the international rig market could turn around in 2017.   Rig rates have more

Eni Arctic Service Rig Extension Okayed

Italian oil company Eni has received permission from Norway's Petroleum Safety Authority to extend the use of a service rig on its troubled Arctic Goliat oil field offshore Norway until Nov.

Oil Spill Statfjord North Sea Field - Statoil

Loading of tankers suspended, unclear when it will resume. Oil spilled into the North Sea during the loading of a tanker at Norway's Statfjord field on Thursday, operator Statoil said.

Maritime Security Maritime Standards Naval Architecture Navigation Offshore Oil Pipelines Pod Propulsion Salvage Ship Electronics Sonar
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1772 sec (6 req/sec)