Gulf Drilling Takes Steps to Counter Market Downturn

Doha, March 20 (QNA) - Gulf Drilling International (GDI), a subsidiary of Gulf International Services, has indexed its operating rates to crude oil prices and taken several cost optimization steps to counter the global market downturn. In a statement Sunday, Gulf International Services announced these steps taken by its subsidiary "to minimize the impact of the market downturn". A new set of further measures are being taken by GDI to maintain and boost its asset utilization rates with the plunge in oil prices and falling global demand for drilling services, the company said. GDI is also exploring potential new business opportunities in the GCC region. GDI's fleet consist of a total of twenty assets, out of which nine are offshore jack-up drilling rigs, eight onshore rigs, two lift-boats, and one accommodation jack-up. Driven by low crude oil prices and reduced demand for drilling rigs worldwide, five offshore drilling rigs, one onshore rig, and one accommodation jack-up have been released from their existing contract with various clients. In addition to the released rigs, one lift-boat is under repair after suffering a punch through and is not expected back in service until 2017. Out of the released assets, one offshore drilling rig (Al Jassra) has been contracted in late February 2016. Another offshore rig Msheireb has also been offered for a contract expected to start in January 2017. All other assets are also being actively marketed to prospective clients for speculative projects all expected to start in Q4 2016 or Q1 2017, GDI said. (QNA)