Oceaneering Ratebooks

[Alphie]

I ran across this on Oceaneerings’ website RateBooks. I know they have to make a profit but why such big difference in what they charge and what they pay the offshore worker ? (at least going by the ROVworld Forum Rate table). Do they really pay overtime for working more than a 12 hour day ? Any comments anyone ?

[code:1]————————————————————————————————
| Oceaneering | Norway | America | Africa | Europe | Asia |
| 12 Hour |——————————————————————————–
| Charge Rate | USD | GBP | USD | GBP | USD | GBP | USD | GBP | USD | GBP |
————————————————————————————————
| Supervisor | 1900 | 975 | 1550 | 795 | 1535 | 787 | 1020 | 523 | 930 | 477 |
————————————————————————————————
| Pilot / Tech | 1715 | 880 | 1400 | 718 | 1420 | 728 | 951 | 488 | 880 | 451 |
————————————————————————————————
| Overtime/H | See Note | 172 | 88 | 172 | 88 | 138 | 71 | 125 | 64 |
————————————————————————————————[/code:1]
Note : Overtime rate is [1.65 * base hourly rate] ie. USD261.- for Supervisor.
Also all continuous additional days over 14 are [1.65 * base] ie. USD3135.- per 12Hour day for Supervisor.

Alphie…

P.S. Sorry about the table, tried doing a nice one in HTML but got a reply from the server saying something like "you attempted an unknown attack on this site and have been blocked" [Sigh !]

[rovgimp]

The issue of overtime depends on what the contract states, i believe that it depends on what oil company you are contracted to. I don’t think the likes of BP pay overtime, although I have been known to be wrong.
Anyone else out there with any info?

[Ray Shields]

Also note that these rates are dated end of 2005 so will probably have changed a lot since then.

Its always been the case that if the guy is paid £300, the company put them out at £500. If you see what they charge for the equipment (i.e. £1000 a day for multi million £ ROV) you can see that its the people they make the profit on, not the equipment.

We had a contract once where they screwed up the charging and it turned out the only way we could make a profit was on the consumables. So we had to use as much paper and video tapes as wel could for teh contract to make money 😆

[Alphie]

Never been paid overtime myself but have run into some States guys working in the USA, a fair while back, who were paid an hourly rate based on some incremental increase after 8 hours or weekends etc..

It would be nice if they made the profits on the systems, then at least it wouldn’t be in the operators best intrests to pay the offshore guys as little as they can get away with to maximize profits.

Still the numbers don’t seem to add up regarding 3rd party contractors. Take an agency guy charged out at cost +15%, for the States / UK this would mean they could pay a pilot/tech GBP600 plus GBP25 agency fee per day, and would cost the client about the same as an Oceaneering pilot / tech. Plus if the guy does 4 hours overtime (16 hour day), he would net an extra GBP300.

Alphie

[Anonymous]

Still the numbers don’t seem to add up regarding 3rd party contractors. Take an agency guy charged out at cost +15%……..,

Alphie

What planet are you on?? how do you suggest a company survive on a cost plus 15% basis. You need to go back to school fella….. Companies must make a minimum 30% margin (margin not cost plus…ie divide by .70) in order to remain viable.

[Alphie]

Sorry, that should have been States / Africa, not States / UK.

What planet are you on?? how do you suggest a company survive on a cost plus 15% basis. You need to go back to school fella….. Companies must make a minimum 30% margin (margin not cost plus…ie divide by .70) in order to remain viable.

It’s not my suggestion, it’s in the Oceaneering ‘RateBooks’.

[rovnumpty]

hmmm

Just been doing the maths on the equipment rates Ray mentioned.

Ok assuming £1000 a day for a complete system (they charge for incidentals such as tooling, DVD, Camera, video rental, etc but we’ll ignore that for the moment)

the average system must do at least 250 days a year which means £250000 a year.

Or £365000 a year if they manage to get it out there for the whole year.
That means it pays for itself in 3-4 years, depending on who built it (1 year in Oceaneering’s case)

Not to poopoo Ray, but i think that £1000 a day may be for drill support only (that’s what Oceanqueerthing was charging for a magnum in w. Africa three years ago) survey/construction spreads are usually in the £2000-£3000 a day, so you’re looking at 2-3 years to pay for a system on one of these jobs – and that’s including paying for any spares.

[DANFROV]

When I was working at Sonsub in the late 1990’s the cost of maintaining the cheapest ROV was in the region of £ 50,000 / year not counting Insurance.

[rovnumpty]

Sorry – got a bit distracted before finishing the last post

The point I was going to make was – how many 5year plus systems are out there?

Lots and lots.

which means, apart from the £50,000 – £100,000 a year in spares (inflation Dan) these systems are pure profit.

when you add on the £500 (and thats being conservative!) a day per person profit – say for 300 hundred days a year – that’s £900,000 PER SYSTEM.

so that must be at least a million in the bank every year for a 5 year old system.

I suppose all those managers, HR people, Engineers, sales, accounting and cleaners need paying .

[Ray Shields]

hmmm

Not to poopoo Ray, but i think that £1000 a day may be for drill support only (that’s what Oceanqueerthing was charging for a magnum in w. Africa three years ago) survey/construction spreads are usually in the £2000-£3000 a day, so you’re looking at 2-3 years to pay for a system on one of these jobs – and that’s including paying for any spares.

I am not as privvy to all the charges the company makes, but I have seen a few. for example one recent Drill Support job the ROV was out for not much more than $1000 a day. You also have to remember that its like buying a house – your £100,000 house costs you closer to £250,000 after paying interest on the loan 🙂 Most companies lease their equipment in (either from a finance company or though a sister company in Outer Mongolia where the tax breaks are better).

This particular job I mentioned had been completely screwed up due to the fact the Client was talking in $ and we were talking in £. Imagine the shock when this was realised after the contract was signed 😯 .

[Author]

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