Report: Term contracts for jackups down, rig-days up

Aug. 14, 2023
A total of 126 term contracts for jackups have been announced year-to-date.

Offshore staff

NEW YORK CITY – A total of 126 term contracts for jackups have been announced year-to-date, with 17 contracts announced since July 1, according to Evercore ISI’s latest Offshore Rig Market Snapshot.

The report notes that while the number of term contracts for jackups is currently below 50% of the 291 term contracts last year, “we are seeing a noticeable increase in average jackup rig-days, close to 900 rig days, which is nearly double 2013 levels.”

Evercore said that “we are also experiencing a shift in regional dynamics, with contracting activity strengthening in the Middle East, Southeast Asia, and West Africa while Europe is slowing down.”

Out of 17 contracts announced since July 1, “we note jackup demand continues to remain strong in the Middle East, with small signs of jackup demand recovering in Europe. However, Valaris and Noble believe the jackup market in Europe will continue to be challenged over the next four to six quarters.”  

The report also noted that the average contract term for floaters is up 14% year-over-year at 279 days, driven by the recent uptick in floater contracts over the past three months. This increased the floater contract count to 105, which is only 17% below the jackup contract count of 126, the report said.


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