Drill rig fleet operators are dropping dayrates as the market is squeezed due to the precipitous fall in global crude price. Industry insiders say dayrate bargaining by upstream companies is the play of the day. Rigs operating in the Middle East are particularly exposed.
According to investment research firm, Seeking Alpha, Ensco’s April 2015 fleet status report reveals that the company lowered its dayrates from 10% to 20% for its jackups working for Saudi Aramco in the Middle East, resulting in an average decline of 15%.
Other operators with rigs contracted to Saudi Aramco could be exposed by the move, including Rowan Drilling with 10 rigs out of a fleet of 33.5 (one is under construction) exposed in the Middle East, nine of which are working for Aramco.
In September 2014, Rowan secured three-year contract extensions on four jackups, which could also see reductions.
Image from Saudi Aramco.
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