ORIG sign a contract for its new 7th generation drill-ship for about 275 days, for 5 wells
off the west African coast. That's only 120 days prior to the drill-ship leaving the shipyard......
No name of contract firm or the terms of this short term lease.......
a ORIG new drill-ship ...a weak contract......how will this impact PACD new rigs next year ?
This does not seem to be a positive indicator for other UDW drill-ship operators like PACD
who have new ships coming on line in the next few quarters
I don't like the idea of UDW contracts measured in number of wells rather than years.
Will these "new type of deals" have a negative effect on the revenue capacity of Meltem
that is delivered to PACD from Samsung in Q2 of 2014 ???? I hope PACD mgmt has
better luck getting a long term contract than ORIG for their brand new drill-ship
Your concern seems valid and, if it becomes a trend, it merits watching. PACD could be impacted but just not sure if it will be a meaningful negative. I think the key metric is that oil is going higher. Everyone knows it and the future for UDW is very bullish. Expect some serious consolidation in the industry. PACD has a very sharp management and will be a big beneficiary with the most modern fleet in the biz.
I wonder how technologically advanced the ORIG drill-ship truly is.....but its brand new !
I would think all new drill-ships would carry the better BOP and dual & directional
As a long-only investor in PACD, I am not concerned with crude spot pricing but rather
the day rate contract amounts signed by PACD and their drill-ship competitors.
The market overall watches crude spot...but a real weak contract could sink the PACD
stock price or the price of other UDW drillers who "get caught short" on a deal.
Why did ORIG wait only 120 days before the new drill-ship is delivered ? Seems really
risky and odd............
Interesting to see the "Strong Hands" (SDRL) announced they agreed to 4 new drill-ships
to be built by strong fabricators ( 2 by Samsung) to be delivered by the end of 2014.
JF must know something that's coming over the next 4 through 12 quarters......