A Maersk semisubmersible drilling rig in the Gulf of Mexico. Credit: Statoil
COPENHAGEN, Aug 15 (Reuters) – Maersk Drilling expects the weak market to continue in the short and medium term but still hopes to avoid laying up or cold stacking rigs and instead keeping idle rigs on standby, ready for use, Chief Executive Claus Hemmingsen told Reuters.
“We have decided to use warm stacking for a handful of rigs so they can be activated quickly again,” Hemmingsen said.
Profits at Maersk Drilling, a unit of shipping and oil group A.P. Moller-Maersk, fell by 25 percent to $164 million in the second quarter from a year earlier as major oil firms cut or postponed exploration projects as a result of the low oil prices.
Hemmingsen said he expects to avoid cold stacking as it is very costly to mothball rigs and can take more than six months and millions of dollars to prepare them again for new work.
(Reporting by Ole Mikkelsen; Editing by Greg Mahlich)
(c) Copyright Thomson Reuters 2016.
Join the gCaptain Club for curated content, insider opinions, and vibrant community discussions.
Join the 110,436 members that receive our newsletter.
Have a news tip? Let us know.
By Gary McWilliams and Marianna Parraga HOUSTON, Sept 24 (Reuters) – Tropical Storm Helene was expected to turn eastward on its track through the Caribbean and into the Gulf of Mexico, increasing...
The National Hurricane Center warns that Tropical Storm Helene is is forecast to rapidly intensify as it approaches the southeastern United States. Forecasters predict Helene will reach major hurricane status...
The National Hurricane Center (NHC) has issued a warning about a potentially dangerous weather system approaching the Gulf Coast. The disturbance, soon to be named Hurricane Helene, is rapidly intensifying...
Access exclusive insights, engage in vibrant discussions, and gain perspectives from our CEO.
Sign Up
Maritime and offshore news trusted by our 110,436 members delivered daily straight to your inbox.
Essential news coupled with the finest maritime content sourced from across the globe.
Sign Up
Join The Club
