Kezza, while I don't know the detail of the Neon JV rig terms the usual scenario is as follows.
At at high level, the cost to side track is on the JV. Rig costs are usually spoken of in two ways: day rate and spread cost. The day rate is simply the cost per day to rent only the rig, crew and equipment. If there is a rig problem that precludes a JV from drilling, the day rate drops to $0 after 36 hours. During weather delays and such, there is usually a stand by rate which is discounted from the day rate. Spread cost is the day rate plus the cost of all the associated services (mud, logging, boats, helicopters etc). That rate will reduce also in weather related delays.
Its also usual when drilling during typhoon/cyclone/hurricane seasons to have some contingency built in to the original budget so that gets used up prior to the jv having to meet any extra cost over runs.
NEN Price at posting:
31.5¢ Sentiment: LT Buy Disclosure: Held
