The offshore drilling market reveals a sluggish and painful restoration. According to the information launched by HIS (Petrodata rig rely) the marketed rig utilization price is right now 76.three% in comparison with 71.6% a 12 months in the past. The variety of marketed contracted rigs has elevated from 476 to 498. 22 extra offshore rigs are at present contracted however the marketed rig provide misplaced 12 items throughout the 12 months. The whole offshore drilling rigs provide fell from 800 items in January 2018 to 758 which signifies that 42 rigs have been retired, transformed or scrapped.
Unfortunately with a utilization price simply exceeding 76% the dayrates stay low. The ultra-deeepwater semi-submersibles with a dramatically low ulilization price maintain drilling at dayrates round $150.000. Most of the ultra-deepwater drillships are drilling at $170,000 a day. A pointy improve was famous from December 2018 with new contracts signed at $300.000 a day.
The ulilization price of the tough setting jackups in Northwest Europe elevated sharply in Q2 2018 however the dayrates stay low as a result of over suplly ($60,000). The utilization price of the 300ft/400ft jackups in Southeast Asia stays under 40% and dayrates seldom exceed $40,000.
Ensco’s CEO Carl Trowell stated: “We have seen an uptick in direct discussions with clients concerning new contracts and extensions of present contracts. Not all of those tenders and inquiries will lead to extra work, however we have now seen a noticeable shift in our clients’ attitudes towards offshore tasks not too long ago, which we anticipate will present a wholesome pipeline of labor within the years to return.”
Senior Rig Analyst at IHS Markit Cinnamon Edralin stated: “Right now, operators are their budgets for subsequent 12 months. Over the previous few years, there was lots of strain on corporations to satisfy shareholder necessities, in order that they have actually had strain to maintain prices down.”
Rick Von Flattern, contributor at Drilling Contractor commented: In 2019, the worldwide offshore drilling market appears destined to not differ considerably from 2018, as operators labor to manage prices at the same time as world demand for oil continues to develop. The result’s more likely to be a sluggish and regular development, constrained by an oversupply of drilling items however inspired by regular oil costs and cautiously optimistic operators.
The offshore rig market can be paying right now the frantic race to construct new state-of-the-art items that culminated within the early 2010s. The oversupply is ready to final as new items will hit the water within the subsequent coming years. Keppel Offshore and Marine in Singapore plans to ship as much as 10 jackups in 2019, 7 jackups and one semi-submersible in 2020.
(Source: IHS, Keppel O&M/Image: Newbuild jackups deserted by Perisai and Oro Negro idle in Singapore PPL Shipyard in January 2019/Rene P.)

The put up THE SLOW AND PAINFUL RECOVERY OF THE OFFSHORE DRILLING MARKET appeared first on Energy Global News.

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