Sliced: Trinidad Drilling trims rig plans.
Trinidad Drilling cuts rig deliveries
Canadian outfit Trinidad Drilling cut its capital expenditure budget, canceling delivery of four rigs and delaying delivery of six more, the company announced today.
The reduced budget includes changes to Trinidad's previously announced rig construction programme, most notably: a 12-month delay in the delivery of six new drilling rigs, out of a total 16 rig construction programme, and the cancellation of four new service rigs.
Trinidad head Lyle Whitmarsh said the decision was based on economics and reduced need for rigs.
This year, Trinidad said it plans to spend about C$165 million (US$131.4 million) down from initial expectations of C$330 million.
The new plan includes a C$90 million reduction for delayed rigs and cancelled service rigs as well as a C$75 million reduction in planned improvements to the existing fleet. The six delayed drilling rigs remain under long-term, take-or-pay contracts with the original customer and are expected to be completed in next year, assuming improved market conditions, the company said.
The remaining seven drilling rigs in the construction programme are expected to be delivered by the end of the third quarter this year. The customers for these rigs have confirmed their commitment and the associated long-term, take-or-pay contracts are unchanged.
With the changes to the rig construction programme, Trinidad has 45% of its fleet under long-term, take-or-pay contracts.