Deepwater oil driller SeaDrill (SDRL) has the least exposure to the US government’s drilling permit delays amongst ultra-deepwater drillers. They only have one rig operating in the Gulf of Mexico (West Sirius pictured).
http://www.reuters.com/article/2011/03/01/energy-drillers-gulfofmexico-idUSN0113598720110301
Rig type: Semi-submersible
Name: West Sirius
Generation/type: 6th-BE
Built: 2008
Water depth (feet): 10,000
Drilling depth (feet): 35,000
Location: Gulf of Mexico
Client: BP
Current contract: Start – July 2008; Expire – July 2014; Dayrate - $474,000
Previous contract: none
Source: SeaDrill Fleet status report 4Q2010 (http://www.seadrill.com/investor_relations/fleet_update_report )
SeaDrill is paid by BP $474,000 per day regardless if they are allowed to drill or not. However, oil companies will eventually terminate their contracts with drilling providers (like SeaDrill) if the US government doesn’t issue permits in a manner timely enough to profitably drill for oil. The good news is that if the US government is slow to issue permits to drill, then SeaDrill is exposed the least amongst the companies mentioned in the article link above. Transocean (RIG) has the most exposure to the Gulf of Mexico deepwater permit delays.
The West Sirius should bring in $173 million dollars in revenue per year for SeaDrill per its contract with BP. I couldn’t find the cost to build the West Sirius in a simple Google search.
Most of SeaDrill’s rigs are in Southeast Asia waters.
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