What do you mean what is the standard rate per barrel? Average crude price? For the 5 years before the crash of 2014, it was averaging close to 90-100 dollars per barrel. 2015, it averages 52 dollars per barrel (almost a 50% decline) and for 2016, most companies are calling for 35 dollars per barrel at most.

A lot of companies are now using conservative numbers in the project planning. Petronas uses 30 bucks at most for 2016 and beyond (that's the key word here ... And beyond). It took them ages to incrementally use a higher oil price for their project planning after the 1998 crash, and after the 2014 crash, the 30 dollar per barrel numbers will stay there for at least 3-4 years. So if you are doing any project in Malaysia, expect Petronas to push hard on cost. It doesn't matter what the actual crude price is at the time the project is sanctioned, Petronas will use 30 dollars and the cost associated with the projects are expected to use the same 30 dollars number as well. Any rigs with 90k DCRs can kiss the project goodbye. Not going to happen and not going to pass commercial stage.

I remember Petronas Head of Drilling told us in the DWOP Session a few months back that right now even the meeting room also he has to beg for discounts...So expect the same for other big things..

Heard yesterday Petronas start terminate ppl at KLCC, drillers? Anyone knows?

(^__^)

I wonder whats the Dayrate for N1 right now. I guess NOC pad zero rate while the rigs (N1 and others) on the "suspension" mode, right? That way, NOC will not has to paid penalty for early termination and drilling contractors still have the contract on their books.


Attached thumbnail(s)

GMs and SGM already got their VSS letters. Most will get their letter this Monday.

I believe most of the drilling contractors willing to lower the price, but i wonder if there is still a pushing factor from the top to use Malaysian Flagged Rigs even though the offered rate above the expectation, say more than 90k? I'm talking about the operations in Malaysia Water.

Like below, in Indonesia currently they are very particular and priority will be given to the local flagged rigs..the result of the cabotage law that now includes the drilling rig.






Attached thumbnail(s)

Indonesia is very strict for local content enforcement in their O&G. We should follow the same like them.

Not only O&G, others industry like mining and power too.

Obviously Petronas prefers local company so UMW and Perisai will be at an advantage BUT, 90k won't fly. Even 75k won't fly.

ouch, now baru GM & SGM level. The biggest population of Petronas yet to know their fate. Sigh.. Bro, any idea on their VSS package?

The first VSS/termination is the toughest & most compassionate one. The management will try to provide a good severance package to the impacted personnel plus good consulting/consolidation words and etc. After a few rounds, they just want to get over it. It is like pulling off a plaster from a wound. They just want it to over as fast as they can with the minimum effort. Hopefully the later batch will have a good severance package too.

I think we do have the enforcement for local in a business in Msia. Foreign investor required to have a local partner/company for an investment in Malaysia. Malangnya we know that the enforcement is the lacking part in Msia. Most of them just use the local partner name for the sake of the regulation. Hehe..

Kadang bro, local di beri peluang palak pande jadi besar juak.

one example we should follow i guess. they are doing much better and their economy much stabler then our so call pemimpin local.

price comes 1st, then comes the locality. i do hope the locals get the bid even if it means very cheap. rather then see more expats compared to the tons of us locals who are out of the job.

Got a call from headhunter and surprisingly Shell is hiring and I expecting a stiff competition from others for a roles that I aim for.

Since everyone is nosediving their rates, I am going to do the same.

Shell tuuu..

Good luck bro, I pray for the best

khabar indah dari rupa

Yesza. Dont hope much.

17 rigs by 13 contractors responded


Attached thumbnail(s)

Heh heh heh

fuhhh price war. mcm pasar mlm sale ni. 'mai bang, mai kak, murahmurah, 2.50 satu rig'

Petronas restructuring has begun. Many got transfered to Sarawak operations permanently. Pity those with family in West Malaysia

This post has been edited by MEngineer: Mar 19 2016, 12:38 AM