Report: Rig dayrates on the rise in Southeast Asia

Oct. 3, 2023
Dayrates for all types of rigs in Southeast Asia are witnessing robust growth, according to Evercore ISI’s latest Offshore Oracle report.

Bruce Beaubouef * Managing Editor  

Dayrates for all types of rigs in Southeast Asia are witnessing robust growth, demonstrating an increase in demand and tightening supply, according to Evercore ISI’s latest Offshore Oracle report.

The report notes that drillships and jackups in Southeast Asia are operating at full capacity, while semis and jackups in Australia are experiencing 100% marketed utilization levels, further driving dayrates upward.

The report also notes that drillships are approaching $500,000/day; semis have exceeded $400,000/day; and floater dayrates are poised to continue their growth. Southeast Asia boasts “two coveted drillships with contracts stretching into the mid-2020s, commanding dayrates exceeding $440,000/day,” Evercore said in the report.  

In contrast, while the semi market remains softer in Southeast Asia, Australia has seen a substantial jump in dayrates, rising to $485,000/day, the report notes. Jackup dayrates are also increasing, with Southeast Asia and Australia registering the highest at $151,000/day and $180,000/day, respectively. Jackup dayrates are expected to reach $160,000/day by the end of the year.

“We believe the global demand outlook for jackups will remain strong for several years,” Evercore commented. Demand in Southeast Asia is expected to average 32.7 units this year, increase to 38.4 units in 2024, and reach 39.2 units in 2025.

In its recent Offshore Rig Market Snapshot report, Evercore highlighted the “robust” fundamentals of the Middle Eastern rug market, and its ability to attract jackups globally. Marketed utilization continues to rise in the Middle East, currently standing at 97%, with 150 rigs under contract. By the end of the year, 175 jackups are expected to be under contract. In 2024, the forecasted contracted average will be 183.4 units, and 179.7 rigs in 2025. “The tight jackup market in the Middle East is leading to a squeeze in the global market as a whole,” Evercore said.

10.02.2023

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