GIS Moves to Employ Idle Rigs

Qatar's Gulf International Services (GIS) has leased out one of two jack-up drilling rigs whose contracts had gone idle and is also considering leasing out the second one.

GIS shares have tumbled 19 percent since it said in April that the decline in oil prices was hurting the business of its subsidiary Gulf Drilling International, leading to the release of one previously contracted rig and cuts in day rates.

On Tuesday, GIS said in a statement that two of its rigs were idle but one had already been booked for short-term work this year and a longer-term contract starting in the first quarter of 2016.

The second rig is also being considered for work that is scheduled to commence early next year, it said.

The company also said its customers had negotiated cuts of between 10 and 15 percent to daily operating rates of drilling rigs.

Reporting by Olzhas Auyezov