Page 14: of Offshore Engineer Magazine (Jul/Aug 2020)
MARKET REPORT Jack Up Rigs
NOC ON EFFECT: JACKUP RIG DEMAND
AT THE MERCY OF NATIONAL OIL
By Teresa Wilkie, Bassoe Analytics ver the past four months we have been ?ooded tor – a prevalence of national oil companies (NOCs).
by news of just how badly the offshore rig mar- ket has been hit during the double whammy of NOCS DISHING OUT FAIR SHARE OF TERMINATIONS
O the Corona pandemic and oil price fallout. We Now, this doesn’t mean that these areas and their NOCs witnessed what seemed like a never-ending wave of contract haven’t been doing their fair share of terminating offshore rig cancellations coupled with increasing numbers of contract deals, just not to the same extent as International oil compa- options being declined, along with suspended drilling opera- nies (IOCs) and smaller independents – plus these regions also tions and a surge in deferrals to campaign start-ups. In addi- typically have some of the largest ?eets. As can be seen from tion, award activity has almost dried up, resulting in drilling Figure 2 IOCs have, so far, cancelled over twice the amount contractor backlog quickly withering away. of rig time that NOCs have, however NOCs have handed out
Cancellations and suspensions have come from a mix of com- more suspensions than the IOCs.
panies from small independents to supermajors, and almost all As already mentioned, new awards have been few and far regions have been impacted in some form. However, as can be between since March and IOCs and independents have ac- seen from Figure 1, there are currently several areas standing tually awarded 20 deals in comparison to just 12 from the out as having higher levels of activity despite these challenges. NOCs. However, NOCs may have made fewer deals since the
These regions, which include the Middle East, Far East, India, latest market slump but they have still secured more rig time
Mexico, and Latin America, all have one common denomina- than any other operator type.
Figure 1: Global Overview of current Jackup,
Semi & Drillship Activity by Status
Data from Bassoe Analytics
Figure 2: Cancelled, Suspended & Awarded
Contracts for Jackups, Semis & Drillships since mid-March 2020
Data from Bassoe Analytics 14 OFFSHORE ENGINEER OEDIGITAL.COM