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Pacific Drilling S.A. Message Board

  • jackmaster20 jackmaster20 Jul 16, 2013 3:15 PM Flag

    ORIG new contract signed June 17th

    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

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    • 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.

      Sentiment: Strong Buy

      • 1 Reply to pmoishe
      • 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
        drilling capacity.

        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......

 
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