VANTAGE DRILLING

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— Andy Poosuthasee , Director of Supply Chain that where the norm used to be longer term , multi-year contracts , these days contract terms are often counted in months . This in turn means that the company ’ s assets have to be moved much more frequently than before .

From a supply chain point of view frequent movements call for a greater degree of maturity , says Poosuthasee . “ Probably the major challenge we face currently is that our rigs don ’ t tend to spend a lot of time in one particular country – we ’ re jumping around to different locations ,” he explains . With seven of its eight rigs under contract Vantage is doing a lot better than its peers – the industry average is around 61 % utilization , and there ’ s no lack of rigs waiting to come out of shipyards to further dilute that percentage . Still , the brevity of contract duration that is the price for high utilization is a supply chain challenge . “ Even if we are working in the same country , the agreements these operators have with us and with the country itself are different . Looking ahead , I think we will be seeing more rather than fewer movements and that means that we have to be very nimble from a supply chain perspective .”

MAY 2019