UK-based semisubmersible rig operator Awilco Drilling has said global floater fleet utilization could finally start to recover from 2018.
The firm says the decline in exploration and production spending seems to be bottoming out in 2017, which could mean an uptick in 2018, due to the reduced cost of oilfield services and ongoing attrition in the rig market, with reduced supply thanks to scrapping.
Dayrates for floaters are expected to remain low during 2017, but demand for decommissioning work is firming up from Spring 2018, says Awilco, with operators showing an interest in returning to activity.
According to Awilco, more than half of the UK North Sea floating rig fleet were either cold or warm stacked in January. The firm, which has two rigs, one of which - the WilHunter - is currently warm stacked, says day rates have now plateaued in the basin, at about US$100,000, while the marketed floater fleet has been considerably reduced, to under 15 rigs.
Three Transocean rigs and three Diamond Offshore rigs are cold stacked, alongside the WilHunter, while Stena Drilling's Stena Spey, Paragon Drilling's Paragon MSS1 and North Atlantic Drilling's West Phoenix are warm stacked. The Stena Spey and West Phoenix are due to start new contracts in Q1. Just five rigs have contract backlogs into 2018.