Rig market gets a boost from Mexico Round 2.4

The success of Mexico’s second deepwater licensing round, when 19 blocks were awarded to numerous international and domestic players, is poised to spark a resurgence of offshore drilling activity in the sector.

The success of Mexico’s second deepwater licensing round, when 19 blocks were awarded to numerous international and domestic players, is poised to spark a resurgence of offshore drilling activity in the sector. International rig contractors will now have a golden opportunity to lock in floaters for medium- to long-term contracts in Mexico. There are currently only three floating rigs in Mexico, all of which are sixth-generation semisubmersibles controlled by local company Grupo R.

Most of the incremental demand for floaters in Mexico will therefore likely come from operators that previously have not had much deepwater exposure and that do not currently have much floater backlog, such as Lukoil, Cairn Energy, Petronas, and Repsol.

–Jo Friedmann, Analyst, Rystad Energy

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