"But the sector has been facing the problem of uncompetitively high prices for some time before oil prices went into freefall in the summer, and there are already signs of prices dropping: the daily rental price for a semi-submersible drilling rig has fallen from more than $400,000 a year ago to less than $250,000 now"
"The average UK offshore worker now earns £90,000 for a 26-week year. This compares with the £70,000 earned by the average Norwegian offshore worker and with a UK national income average of just in excess of £25,000"
and the best bit, for all of the doom mongers talking about Xcite and the current sp/price of oil, "Looking forward, market analysts Oxford Economics said last week that oil prices still face pressure from slumping Chinese demand, strong shale production from the US and strong supply from the Opec cartel, but nevertheless expects prices to rise to $111 per barrel by 2020 and $200 per barrel by 2040.
XEL have already been talking to their nominated contractors for literally years now. Bentley is a project that will encompass 50 of those in addition. So while there are short term marginal possible benefits to be gained in squeezing contractors, these guys have to work together for years with XER, and likewise XER staff with them. So any 'squeezing' will sensibly need to be tempered by the fact these guys will be tasked with getting Bentley off the ground, and running the project thereafter for the life of the field. Where savings may come in is in capex as opposed to operating costs, for example the rig, could a cheaper yet fit for purpose unit be found bearing in mind the N plus is likely still in the conceptualization stage, and was initially destined anyway for China use. Jmo.
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