Data Briefs

Oct. 31, 2023
At-a-glance statistics and analysis of the offshore energy industry

Editor's note: This Data section first appeared in the September/October issue of Offshore magazine. Click here to view the full issue.

Rig day rates will continue to rise

Global jackup utilization keeps rising, driven mainly by operators in the Middle East picking up rigs for term work. This has left fewer high-spec jackups available in other regions around the world, and it is opening some opportunities for lower-spec jackups. Now some operators outside the Middle East are scrambling to secure high-spec jackups ahead of upcoming programs. With contracted utilization, which includes rigs under contract now and those with future contracts, over 90% for the competitive (marketed) fleet, day rates will continue to rise. Operators should try to book early, especially if they need a high-spec jackup in the near term.—Esgian

What's the cost to build a new jackup?

It is estimated to be in the $250 million to $300 million range for a 400-ft-rated rig, depending on yard location. Delivery time is thought to be 2 to 2.5 years. According to jackup owners, an acceptable 15% ROI for a newbuild with 90-95% utilization would require a day rate of $200,000-230,000 over the useful life (~25 years) of the rig. In the current newbuild inventory, there are 20 undelivered jackups, three of which have contracts and one has a pending sale. The remaining 16 units, ordered as early as 2013, have been mostly completed but would need shipyard time to finish construction and undergo acceptance testing.—Westwood Global Energy Group

Deepwater drives growth in new regions

In the long term, deepwater and ultradeepwater will provide the most growth opportunities for exploration. The Atlantic Margin of Africa and the Eastern Mediterranean regions will experience the greatest growth, and there will be spend in some unspecified new frontiers. There are areas where leads and prospects are being worked up with recent seismic data, for example Uruguay, southern Argentina and deepwater Malaysia. Future spend in success case areas is additional exploration following success, whether that's in a frontier like Namibia or Greece, or a more established province like Egypt's Nile Delta.—Wood Mackenzie

Courtesy Altera Infrastructure Holdings
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