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.

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?

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.

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.

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......

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.

Not Impossible ??
 

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.

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.

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;) )

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.

Bond couldn't bid on the contract?
Why?

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!