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The potential of West Africa’s emerging pre-salt play and big gas discoveries off East...

The potential of West Africa’s emerging pre-salt play and big gas discoveries off East Africa are set to drive an 18% leap in annual drilling expenditure to more than $17B across the region over the next five years, GBI Research predicts. Rig contractors such as Seadrill (SDRL) and Ensco (ESV) operating modern units designed for Africa’s deepwater plays are set to cash in on the prospecting surge.
Comments (10)
  • KenNagle
    , contributor
    Comments (288) | Send Message
     
    Ever since the double dividend SDRL can't seem to get any traction despite mostly good news on backlog and new rigs coming online.
    12 Mar 2013, 12:14 PM Reply Like
  • wigit5
    , contributor
    Comments (4012) | Send Message
     
    Agreed, I think it's a lot of issues but debt, oil price volatility, and day rates for rigs... also SDRL does a lot of funny stuff strategically selling assets and stuff to subsidiaries which probably muddles the water for folks.
    12 Mar 2013, 12:16 PM Reply Like
  • Energysystems
    , contributor
    Comments (1043) | Send Message
     
    I agree Wigit. People need to immerse themselves in the info in order to understand it. I see no problem if SDRL spins off 6-8 rigs in an MLP(for example) and the parent co still holds 60-70%+ of the MLP.
    12 Mar 2013, 04:27 PM Reply Like
  • tom1119
    , contributor
    Comments (33) | Send Message
     
    Anyone know when SDRL is expected to announce their next divy? Traditionally, they are overdue. The last 2 years, they went ex-divy on 3/2/10 and 3/8/11.
    12 Mar 2013, 12:47 PM Reply Like
  • wigit5
    , contributor
    Comments (4012) | Send Message
     
    tom the 1st quarters dividend was paid in December to avoid tax rate hikes, we wont see another dividend till 2Q

     

    if I understand it all correctly that is
    12 Mar 2013, 01:08 PM Reply Like
  • Arthur Fisher
    , contributor
    Comments (233) | Send Message
     
    Is that 18% annually or 18% over five years?
    12 Mar 2013, 12:55 PM Reply Like
  • Herr Hansa
    , contributor
    Comments (3080) | Send Message
     
    I tend to agree with the premise, at least over the next five years. The problem is that rig utilization is very high at the moment. In order to meet a future need, more newbuilding rigs will need to come on line over the next five years. While I like Seadrill (SDRL), I don't feel they are better positioned than other rig operators for upcoming projects in Africa.
    12 Mar 2013, 02:30 PM Reply Like
  • 5bandit5
    , contributor
    Comments (492) | Send Message
     
    Wigit5

     

    You are right .
    12 Mar 2013, 02:37 PM Reply Like
  • CaptKorn
    , contributor
    Comments (147) | Send Message
     
    Herr Hansa they are better positioned because there fleet is the second newest deep water and harsh environment fleet. By the way what are your thoughts on the shipping sector? That may be where the big money will be made as the glut is overcome.
    12 Mar 2013, 03:11 PM Reply Like
  • Herr Hansa
    , contributor
    Comments (3080) | Send Message
     
    Newer rigs command higher rates, but not all projects want to use the most expensive rigs. Don't get me wong, Seadrill is a great and well run company, with a great track record. The recent change in the semi-sub game is rigs being built in China. A price war would not be good for the rig players.

     

    I'm still looking into shipping. 2012 was a record for demolition. I can hope for a turn-around, if for no other reason than to see my worst performer improve (FRO).
    12 Mar 2013, 03:27 PM Reply Like
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