21 March 2016
DOHA: Gulf Drilling International (GDI), Qatar's first onshore and offshore oil and gas drilling company and a subsidiary of Gulf International Services (GIS), has rebalanced its operating rates. The new operating rates are indexed to the crude oil prices enabling positive variation in the rates when the crude oil prices increase.
In a regulatory filing to the Qatari bourse yesterday, GIS noted GDI has taken several cost optimisation steps to counter the global market downturn. These steps taken by its subsidiary is "to minimise the impact of the market downturn". GDI is also exploring potential new business opportunities throughout the GCC region, GIS said.
GDI's fleet consist of a total of twenty assets, out of which nine are offshore jack-up drilling rigs, eight onshore rigs, two lift-boats, and one accommodation jack-up.
Driven by low crude oil prices and reduced demand for drilling rigs worldwide, five offshore drilling rigs, one onshore rig, and one accommodation jack-up have been released from their existing contract with various clients. In addition to the released rigs, one lift-boat is under repair after suffering a punch through and is not expected back in service until 2017.
Out of the released assets, one offshore drilling rig (Al Jassra) has been contracted in late February 2016. Another offshore rig Msheireb has also been offered for a contract expected to start in January 2017.
All other assets are also being actively marketed to prospective clients for speculative projects all expected to start in Q4 2016 or Q1 2017, GIS said.
The GDI in its Q4 official news letter noted it had initiated a series of cost optimization measures including restructuring that reduced manpower cost. As part of the restructuring , the company efficiently stacked the assets that were not working; deferred non-essential projects, eliminated non-essential activities and expenditures. The company also successfully re-negotiated more favourable terms with GDI's vendors and suppliers.
"I am proud to say that significant savings were realized in 2015 from these initiatives and the groundwork has been set to realise further savings in 2016 and beyond", Mubarak A Al Hajri, Chief Executive Officer, GDI said the note.
"We are aggressively marketing our idled assets with the expectation that some of these assets will be returning to work soon The seeds have been sown for an eventual turnaround once the market picks up", he said.
Mesaieed Petrochemical Holding Company (MPHC), Qatar's another energy-sensitive company announced recently it had saved around QR132m last year through its cost saving and optimisation efforts. The MPHC, which has interests in the production of olefins, polyolefins, alpha olefins and chlor-alkali products, have plans to optimise the costs further in the forthcoming year.
DOHA: Gulf Drilling International (GDI), Qatar's first onshore and offshore oil and gas drilling company and a subsidiary of Gulf International Services (GIS), has rebalanced its operating rates. The new operating rates are indexed to the crude oil prices enabling positive variation in the rates when the crude oil prices increase.
In a regulatory filing to the Qatari bourse yesterday, GIS noted GDI has taken several cost optimisation steps to counter the global market downturn. These steps taken by its subsidiary is "to minimise the impact of the market downturn". GDI is also exploring potential new business opportunities throughout the GCC region, GIS said.
GDI's fleet consist of a total of twenty assets, out of which nine are offshore jack-up drilling rigs, eight onshore rigs, two lift-boats, and one accommodation jack-up.
Driven by low crude oil prices and reduced demand for drilling rigs worldwide, five offshore drilling rigs, one onshore rig, and one accommodation jack-up have been released from their existing contract with various clients. In addition to the released rigs, one lift-boat is under repair after suffering a punch through and is not expected back in service until 2017.
Out of the released assets, one offshore drilling rig (Al Jassra) has been contracted in late February 2016. Another offshore rig Msheireb has also been offered for a contract expected to start in January 2017.
All other assets are also being actively marketed to prospective clients for speculative projects all expected to start in Q4 2016 or Q1 2017, GIS said.
The GDI in its Q4 official news letter noted it had initiated a series of cost optimization measures including restructuring that reduced manpower cost. As part of the restructuring , the company efficiently stacked the assets that were not working; deferred non-essential projects, eliminated non-essential activities and expenditures. The company also successfully re-negotiated more favourable terms with GDI's vendors and suppliers.
"I am proud to say that significant savings were realized in 2015 from these initiatives and the groundwork has been set to realise further savings in 2016 and beyond", Mubarak A Al Hajri, Chief Executive Officer, GDI said the note.
"We are aggressively marketing our idled assets with the expectation that some of these assets will be returning to work soon The seeds have been sown for an eventual turnaround once the market picks up", he said.
Mesaieed Petrochemical Holding Company (MPHC), Qatar's another energy-sensitive company announced recently it had saved around QR132m last year through its cost saving and optimisation efforts. The MPHC, which has interests in the production of olefins, polyolefins, alpha olefins and chlor-alkali products, have plans to optimise the costs further in the forthcoming year.
© The Peninsula 2016
