Marine Link
Wednesday, September 28, 2016

BP to Pay Record Price for Drillship

April 17, 2006

BP (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 (STO), 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 Magazine Cover Sep 2016 - Maritime & Ship Security

Maritime Reporter and Engineering News’ first edition was published in New York City in 1883 and became our flagship publication in 1939. It is the world’s largest audited circulation magazine serving the global maritime industry, delivering more insightful editorial and news to more industry decision makers than any other source.

Subscribe
Maritime Reporter E-News subscription

Maritime Reporter E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

Subscribe for Maritime Reporter E-News