Offshore rig contracting activity tracks lower for second straight month

Nov. 20, 2020
Norway, Guyana, and Brazil are bright spots.

Offshore staff

NEW YORK CITY – Only seven contracts have been announced thus far in November, and contracting activity is on pace to track lower for the second straight month and ninth time this year, according to Evercore’s latest Offshore Rig snapshot.

Of the ninety-eight floater contracts announced year to date, 18 are for term with three confirmed in October for Norway, Guyana, and Brazil, says Evercore. On the jackup side, the report notes that 84 of 167 jackup contracts were for term including two of the seven contracts announced this month. While November term jackup contracts were secured for the UK and Indonesia, 85% of the YTD total have been driven by the Middle East (44) and Far East (27).

Meanwhile, contractors continue to retire older assets with three jackups and three semisubs scrapped over the past month, bringing the YTD total to 14 jackups and 23 floaters. As a result of lower supply and longer term, about 42% of the global jackup supply is contracted for 2021, crossing the year ago 39% average after trailing for four months.