The utilisation rate for land oil rigs has been constantly rising. Analysts believe that the utilisation rate for offshore rigs has also started to improve
The operational utilisation rate of oil rigs worldwide has been constantly rising. Though this rise is mainly driven by an increase in the utilisation of land rigs, 284 offshore rigs were operational in November—the second highest monthly rate in 2009—as per data with Baker Hughes, a consulting services group which services the worldwide oil and natural gas industry. The entity says that the number of rigs operating internationally has been on a constant rise over the past six months.
“The utilisation (rate) for offshore rigs has started to improve. For example, Aban Offshore had eight rigs idle a few months back, but in August 2009 it received contracts for five rigs. Only three rigs remain idle presently,” said Kejal Mehta, analyst, Prabhudas Lilladher Pvt Ltd.
As per data from Baker Hughes, international rig counts have gone up to 1,025 in November 2009 from a low of 986 in April 2009. The rig count for 2009 was highest at 1,044 in January 2009. This total international rig count is mainly driven by utilisation of land rigs. In June 2009, 698 land rigs were operational, while 741 land rigs were operational in November 2009. In November 2009, 284 offshore rigs were operational. In February 2009, 286 offshore oil rigs were operational. The international rig count is inclusive of the total number of rigs in Europe, the Middle East, Africa, Latin America and the Asia-Pacific region.
Baker Hughes data on worldwide figures for rig counts indicates that total rig counts have increased to 2,409 in November 2009 from 1,987 in June 2009. The positive trend is visible in the number of operational rigs over the past six months. In July 2009, 2,080 oil rigs were operational, the figure went up to 2,105 rigs in August 2009, and touched 2,203 rigs for the month of September and October 2009. This data includes figures for both land and offshore rigs.
The offshore rig utilisation rate was on a decline from July 2008 (312 offshore rigs operational), which dropped to an all-time low of 261 operational rigs in August 2009. “The utilisation rate had dropped significantly for offshore rigs in the jack-up segment, which has been picking up recently. The utilisation rate for these rigs is expected to improve,” added another analyst who did not wished to be named.
Though the demand for oil rigs is expected to go up, analysts do not envisage a rise in the day rates for offshore drilling. “We expect the demand for offshore rigs to pick up, but a hike in day rates is not expected. A lot of new rigs will be coming up, so capacity utilisation will not touch 90%-95%. This (high rate of) capacity utilisation is required for a hike in day rates,” added the analyst.
LyondellBasell and RIL late last month disclosed a "preliminary non-binding offer" by the Indian company for taking a controlling interest in the world's third largest independent petrochemical maker. Going by industry sources, Reliance Industries' bid could be more than $12 billion
Amid reports that Indian corporate giant Reliance Industries Ltd (RIL) was mobilising funds for its acquisition of LyondellBasell, the global petrochemical major has said that it has not yet received a final bid.
"Reliance has not made a final bid, (it has made) only a preliminary non-binding offer," said a spokesperson for LyondellBasell, which is currently fighting to get out of bankruptcy.
In reply to emailed queries, the spokesperson told PTI that a settlement agreement has been reached between LyondellBasell and the financial party defendants in the litigation brought by the unsecured creditor's committee on behalf of the bankruptcy estate.
"The proposed settlement, which must be approved by the bankruptcy court, calls for a cash payment of $300 million to unsecured creditors upon the company's exit from bankruptcy," he said.
LyondellBasell and RIL late last month disclosed a "preliminary non-binding offer" by the Indian company for taking a controlling interest in the world's third largest independent chemical maker. Going by industry sources, Reliance Industries' bid could be more than $12 billion.
Asked about the financial details of the proposed bid from RIL, the spokesperson said, "We are bound by a confidentiality agreement and will provide no further information."
The original copy of a record is to be maintained till trial or investigation proceedings have concluded, instead of the current practice of keeping papers only for five years, the market regulator has said
Market regulator Securities and Exchange Board of India (SEBI) on Wednesday asked bourses to preserve original records related to an investigation till the trial is completed, instead of the current practice of keeping papers only for five years, reports PTI.
"If a copy is taken by such enforcement agency either from physical or electronic record then the respective original is to be maintained till the trial or investigation proceedings have concluded," SEBI said in a circular to all stock exchanges.
The regulator said that enforcement agencies like the Central Bureau of Investigation (CBI), police and the crime branch collect a copy of documents during the course of an investigation but original records, either in physical or electronic form, are required at the time of the trial.
According to the SEBI (Stock Brokers and Sub-brokers) Regulations, 1992, every stock broker is required to preserve the specified books of account and other records for a minimum period of five years.
In case such documents are maintained in electronic form, provisions of the Information Technology Act, 2000, would have to be complied with, SEBI said.
Further, as per the Securities Contracts (Regulation) Rules, 1957, bourses and their members are required to preserve the specified books of account and documents for a period ranging from two years to five years.