Bassoe analysts commented on the precise floater market: “There is little to be enthusiastic about within the floater market. Uncertainty within the oil market attributable to underlying demand points and a brand new worth conflict, now exacerbated by COVID-19, have led operators to reevaluate spending and funding selections. Until the scenario stabilizes we anticipate restricted contracting exercise and better termination threat. Sudden forecast modifications are probably, however we see the potential for a reversion to decrease dayrates and extended difficulties in transferring in direction of a well-functioning market. Scrapping or conversions gross sales ought to choose up tempo.”
According to the information offered by Bassoe Analytics the floaters utilization price stays low with 56% and 61% for the semi-sumersibles, normal and harsh-environment respectively. Utilisation price for drillships barely exceeds 60%.
The new contracts signed in 2020 are all brief to medium-term contracts. The longest contract is a one-year contract signed by Noble Corporation and ExxonMobil for the drillship Noble Sam Croft. Thanks to the prolific Stabroek Block, offshore Guyana.
The highest day charges go to the final era onerous surroundings semi-submersibles, largely used within the North Sea, with $325,000. eighth and seventh era drillship dayrates common $225,000. Murphy Oil not too long ago prolonged the contract of the Pacific Sharav within the Gulf of Mexico for Three month, growing the dayrate from $225,000 to $230,000.
Walter Oil secured the ultra-deepwater semi-submersible Sevan Louisiana for 4 months at a dayrate of $145,000. Sevan Louisiana, commenced its first contract (Three-year) in 2014 within the Gulf of Mexico with LLOG at a dayrate of $505,000.
Up to 87 floaters have been offered for scrap or conversion between 2015 and 2017. 13 models have been retired or transformed in 2019.
Recently Allseas acquired the Vitoria 10000 drillship, idle in Brazil, for a polymetallic nodules restoration venture. Turkish TPAO saved the 2012-built Sertao drillship from the scrapyard for $37.5 million. The refurbishment prices is perhaps enormous however the unit might be again to drilling within the Mediterranean or Black Sea.
The instances for uncertainty will proceed all through 2020.
(Source: Bassoe Offshore)
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