High-spec jackup demand lifting rates in the North Sea

Supply of modern high-specification (heavy-duty) jackups for shallow-water operations offshore northwest Europe has for the first time surpassed that of traditional 1980s-built jackups, according to Westwood. Utilization, day rates, and future demand for high-spec units is also now ahead of standard units. Demand for rigs with the capability to drill in deeper waters, in harsher conditions and targeting wells with more complex reservoirs was inevitable in a mature region such as the North Sea, according to senior rig market analyst Teresa Wilkie, with easier to drill opportunities drying up. And as high-spec demand increases, prices too appear to be on the rise, with some of the largest high-spec jackups being bid for UK work in the $100,000-$130,000 range with rig owners able to charge a premium due to limited availability.