Offshore rig sales for drilling are on the rise

Sales of offshore rigs are down so far this year, compared with the past two years. However, when analyzed by sale type, the number of units sold to remain within the drilling industry this year has exceeded the past few years. This shows the optimism of drilling contractors that are taking on additional units. Expect the drilling sales figure to climb even more once the Noble/Maersk merger closes and the related sale of five jackups to Shelf Drilling is finalized in October. Meanwhile, rig sales for recycling and conversion are down dramatically from the past few years, showing a reluctance for owners to part with rigs when demand and day rates are both climbing.—Esgian