Rig contracting activity down for fifth month in a row

May 17, 2020
Only five rig contracts have been announced thus far in May according to Evercore ISI's latest report.

Offshore staff

NEW YORK CITY – Only five rig contracts have been announced thus far in May, trailing well below the 21 contracts announced as of this point a year ago, according to Evercore ISI’s Offshore Rig Market Snapshot of May 2020.

The report said that contracting activity is on pace to track lower for the fifth straight month, although the growing year-over-year decline may finally be finding a bottom – from -7% in January to -17% in February, -45% in March, and -73% in April.

Assuming that another five contracts are announced in the second half of this month, May 2020 will be down 72% year-over-year.

Two operators accounted for five May contracts thus far, with Apache exercising three short term options on two floaters while PTTEP signed two Borr Drilling jackups for work offshore Malaysia.

The newbuild Gunnlod will commence its maiden contract in August, drilling eight appraisal wells over 200 days, while the Saga will move from Vietnam to drill five HP/HT development wells over 370 days. Both jackups have options for six additional wells each.