**and the shell N.Sea contract goes to...

[simfly]

BRISTOW!

7 year contract (2 years + 5 year extension depending on introduction of new fleet, then another 3x1 year extensions), assures the work in Aberdeen, Norwich and Den Helder. New aircraft will eventually take over, in Aberdeen EC225, and for one gas it will be EC155b1.

[Taff Missed]

Good. That'll provide some security for the peeps at ABZ etc.

Taff

[bovinedude]

Those Shell chaps really do have good taste!

Toodle Pip

[212man]

The pilots are going to enjoy those aircraft!

[simfly]

212man, have you done a shell flight out of Aberdeen recently... "err, change of plan, no longer single stop, can you route a,b,c,d,e and if time, f & g?", but yeah, at least they'll have nicer kit to do it in even if limited to shell flights only- for the moment ;)

[handysnaks]

212man, have you done a shell flight out of Aberdeen recently... "err, change of plan, no longer single stop, can you route a,b,c,d,e and if time, f & g?",


So, what's changed. It was like that 10 years ago when I was last there:cool:

[Return to sender]

Yeah well Bristow won the Shell contract, not really a major surprise and also not quite what it seems.

The contract itself is not really that important anymore. Shell are no longer the player they were on the North Sea. They are a pain in the arse to work for, interfere on every detail and have a level of arrogance that outstrips George W Bush.

As the contract goes on the number of aircraft will reduce as Shell do a BP and sell off assets. Norwich and Den Helder will go down to 1 or 2 aircraft each and slowly decline.

Don't get me wrong, I pleased for the guys at Bristow but the reality of it is not all that rosy.

The most important contract to win is the Talisman one. They are now the 3rd largest operator in the North Sea, spending millions on investment and are offering a 10 year contract.

Now whoever wins the Talisman contract are the ones who really have something to celebrate.

[ATPMBA]

Who held the contract before Bristow got it?

[SASless]

Another question would be ...How much money did Bristow leave on the table? After missing so many contracts lately.....did they way underbid to get this one?

[Scotsheli]

Return to Sender - he who speaks of arrogance and then continues to question the value of other’s achievements must surely suffer a little from that disease themselves?

For sure the Shell volume may not be what it was in the past - but I’m sure Bristow aren’t complaining – in these times a customer is a customer!

Seven years is a long time and with the Middle East in a state of seemingly long term turmoil and industrial relations in the GOM perhaps not what they might be, $40+ a barrel might be around for a while...and that might just have an effect on Shell’s plans me thinks!

For certain the world does not stop at the far end of the runway at Dyce!

[Nigerian Expat Outlaw]

Scots,

You are right, but so is return to sender, Shell are a s**t company if you are a contractor, believe me, after the end of the runway at Dyce they are intrusive, picky and generally arrogant and annoying. Why hire a contractor if you don't trust them to do the job you are paying them for ?

But having said that you are correct in that any job is better than no job. SAS has a point too, I wonder who will go from Bristow for under negotiating the terms ?:ok:

[chopperman]

Anyone know when the Talisman contract is due to be announced?

Chopperman.

[Hippolite]

ATPMBA

Bristow are the incumbent contractor. The bid only allowed the bidder to use EC equipment, EC225 and EC155. The S92 was not allowed.

SAS

I don't imagine that Bristow would have left much on the table with this one. There are few secrets with rates in the NS and also being the incumbent, they would have a good idea of Shell "thinking" and where the market is going for new equipment.

They did leave some on the table with the current contract and continually tried to raise the rates.

NEO

There are so few management left that it would be difficult to let anyone go right now!!

HH:cool:

[212man]

Simfly,
remind me, what's a 'single stop'? Is it a bit like a 15 stop but with less stops?

[Deck Clear]

Talisman is due next week.....seems they were waiting for Shell to announce.
Not an internet bid this time!

[212man]

Out of interest, which fields do Talisman have?

[Return to sender]

Interesting that Talisman wanted to wait until the Shell announcement. Makes you think that they don't want to work with Shell! Looks like Scotia will keep that one.

Talisman have the 40's, Montrose, Arbroath, Tartan and others...

[Hummingfrog]

R to S

Your info is erroneous.

40s - Apache
Mon/Arb - Paladin - Petrofac
Claymore/Tartan/Piper B and I think Buchan - Talisman.

The Oil companies will want to keep 3 Helicopter companies in the ring so don't expect massive contract changes unless a company comes in with a very cheap or too expensive tender.

HF

[Return to sender]

I stand corrected and bow to your superior knowledge! :O

[Red Kaye]

CHC management are evidently amazed that Bristow have kept the Shell contract as they evidently went in with a very low bid to snatch away the work, even to the extent that it would be at a loss to them. Comments have evidently been made that as CHC were so low, how the heck did BHL get below them?!

BHL's new management have been saying for a while that they will only bid at a price where they can make a profit, and that if they lostg Shell, then it wouldn't be too big a deal as there will be a lot of work in the North Sea for the next 2-3 years.

Could it be that Shell didn't go for the lowest cost operator in this case, taking in to account that the lowest isn't necessarily the best value on such a long term contract? Look what happened the last time Shell went to the lowest cost, BHL had to renegotiate its rates a couple of years later, as I think CHC had to with some of its contracts.

Don't know what happened with the "Ebay" system that Shell have used this time, but could it be that the lowest bid didn't win?

[Droopystop]

Shell would have certainly said in the tender document that they did not have to go with the lowest bidder. It is relatively common for oil companies to give contracts to companies have not tendered the lowest bid, but have tendered the best value for money or tendered a technically better solution.

[SASless]

Why does one take work or try to take work when it is a loss to the operator? Is that not the kind of competition that drives companies out of business? What happens if all the operators are working losing contracts....do they get to claim the bigger market share bragging rights or something?

I think I like the good old days when Gentlemen ran companies and decided amongst themselves how to compete and everyone make money. It may not have been perfectly legal but life was better all around. (except the GOM maybe) I am thinking more of the non-American part of the industry. We never really got into that concept unfortunately.

Am I dreaming or is there something extra in my tea this morning?

[simfly]

Initially Bristow were to be allowed up to 10% over any other operators bid, so yes, Bristow could have bid slightly higher and knew this before hand.

[Deck Clear]

Maybe CHC didn't really want Shell after all:E :E and wanted the opposition to bid as low as they could go;)
Shell doesn't seem to have an enviable record in respect of their contractors wealth and prosperity. The phrase "kiss of death" comes to mind.

[Return to sender]

Deck Clear, you make a good point. Look what happened when Bristow initially won the Shell contract the first time. All of their best clients (Mobil, BP etc..) left and went elsewhere, they were left with Shell and the company very nearly went under a few years later.

It seems that some of the other oil companies don't want to work with Shell either. It is, as you say, 'the kiss of death'!

On the other hand you would think that Bristow would have learned their lesson this time and actually make some money from Shell rather than having to go begging for more halfway through the contract.

Time will tell......

[MaxNg]

Deck Clear

How about this for a scenerio!

CHC tells BHL its high bid price
BHL bids just under CHC,s high bid price.
BHL wins profitable contract.
CHC buys BHL and new contract.
BHL moves out of NS.
CHC/BHL have cartel agreement (Iknow the Oil companies don't allow it).

History has a way of repeating itself.

[Nigerian Expat Outlaw]

MaxNg,

You have a good point. After all, the Government wouldn't allow BHL to take BIH, but they let CHC take Bond and BIH making only two operators at the time. Don't think the oil companies have as much stroke on such things these days.

Cheers,

NEO.

[Banksman]

Did Shell find out how bad CHC Scotia have got and just let Bristow keep contract as Bond where not aloud to bid for it.

[Hummingfrog]

Banksman

Where do you get your info on Scotia from? The boys and girls at Aberdeen pride themselves on giving an excellent service to our customers and our on time departure rate is very good. I think you speak with a jealous agenda:yuk:

HF

(PS I am not management but have pride in the company despite our management;) )

[SASless]

Hummingfrog...

I don't know too many Bristow, Air Log, or Pan African folks that brag about the OLOG management either. Matter of fact....I do not believe I have heard any.

[ATPMBA]

Bond couldn't bid on the contract?
Why?

[Red Kaye]

Because Bond are back in business only because of BP, so they have a BIG say on who Bond can work for. Also, BP and Shell do not like being in bed with the same operator!