bad bad day ahead - whens the cr ?, page-9

They have given it 3 mths notice under the contract conditions.
Like an employer, they could give it 3 mths pay and say go now, or they could keep it around for 3 mths while paying the same.
We don't know what the plans are yet...we have to wait for that...maybe they have to see how the CR goes before a decision can be made/finalised.

Don't rule out Yakal, you have to take all the wording into consideration..."This decision is WITHOUT PREJUDICE to the possible development of the Yakal Field".
Yakal was completed for production in 2008 without incident (unlike Tindalo), so you never know, but yes, once bitten, twice shy!

The way I see it, their options with it are:-

• Try to get some oil out of Yakal (even 1mmbbls at EWT rates would recover a lot of money).


• Re-enter Signal Head.


• Drill another exploration well (like Laawan...they have enough time to drill about 5 of these, but not the finance).


• Look to sub-lease the rig to anyone in the region...they will easily get the same rate or even better.


• Even a remote possiblity to negotiate a warm stack rate with the owner (unlikely - crew wouldn't like that too much).

Perhaps they might even negotiate a sub-lease to OEL!