Sinanan: Zero collected from drill ships

So said Works Minister Rohan Sinanan in the Senate yesterday in reply to a listed question by Opposition Senator Rodger Samuel.

Sinanan said in August 2015, Cabinet (under the former People’s Partnership) gave approval for Transocean Offshore Deepwater Drilling Inc of Houston Texas to stack/layup six deepwater drill ships in the gulf on behalf of the owners for a period of five years at a cost of US$80,000 per ship per annum, that is, US$220 per day.

He said that after the 2015 General Election his ministry (under the People’s National Movement) re-negotiated with Transocean to stack/layup six deepwater drill ships for three years at US$750 per vessel per day, with an option for a fourth and fifth year for US$1,000 per ship per day.

The three-year period runs from October 2015. In March 2016, three more ships were approved to anchor in the gulf, at newly re-negotiated fees of US$1,000 per ship per day for three years with an option to renew for a fourth and fifth year at US$1,250 per day, he added.

“To date, no funds have been collected,” Sinanan said.

“A decision has been taken for the development of a framework for the expansion of layups before further action is taken on the matter.” This framework is now ready to go to Cabinet.

Opposition Senator Gerard Ramdeen asked why no fees were yet collected? Sinanan replied, “The Government has to be careful what we allow in the Gulf.” He said that in the past, for just a US$250 fee, foreign ships have been left in the gulf, creating wrecks which the Government must then spend millions of dollars to remove.