Rig market

OE's analysis of current rig market data is updated monthly using statistics provided by Rigzone.com

Utilization for the competitive fleet of mobile offshore drilling units worldwide has been gradually improving since February and is currently in the mid-80% range. Although demand for all rig types has grown by 47 rigs over the last 12 months, utilization has improved only a slight amount with newly built rigs entering the fleet being the offsetting force. Semisub utilization rates are tracking better than either drillships or jackups. Specifically, semisub utilization on a global basis has entered the high 80% range. Drillship utilization is mirroring overall averages while jackup utilization for competive rigs remains slightly lower.

Turning to West Africa, this region looks to have a bright future in terms of offshore rig activity over the next five years due to recent discoveries. Overall regional utilization is trending at levels significantly better than the global average. Of the 54 rigs currently operating off the coast of West Africa, the mix is 14 drillships, 22 jackups, and 18 semisubs under contract. The floater market here is particularly tight with 100% utilization among drillships and 95% utilization for semisubs.

With such strong ongoing demand for floaters, the likelihood of more floaters entering the region is a distinct probability over the next few years.