Tanker Tycoon John Fredriksen Charges $600,000/day for His Rigs!
April 1st, 2008 YasharYou don’t realize how big the oil/tanker business is until you see some of these figures. I caught this article in today’s Wall Street Journal. Here are some interesting excerpts:
“His units are in such demand he can charge major oil companies nearly $600,000 a day to use them. Similar rigs were earning about $70,000 a day just five years ago. With leasing rates like these, a vessel that cost half a billion dollars to build can pay for itself in as little as four years.”
“Larger than a football field, semis are floating vessels, supported by big pontoonlike structures submerged below the sea surface, that can operate in waters up to 10,000 feet deep. Dynamic positioning — a computer-controlled thruster system fed by data from satellites and transponders located on the seabed — keeps them in place directly above the oil well. The price tag for such a vessel is now around $655 million.”
This guy does business the way I’d like to do it, efficiently:
“Fredriksen and Troim move very fast,” says Odd Harald Hauge, a Norwegian journalist who has written two books on Mr. Fredriksen. “They do deals on napkins.”
“One of their most daring acquisitions was of, a big Norwegian driller, in January 2006. Noble Corp., a U.S. rival, had taken a 30% stake in the company, but Seadrill snapped up shares and eventually forced Noble to sell out. “We bought that in a taxi in Seoul,” says Mr. Fredriksen.”
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