LYNGBY, Denmark — Forward contract coverage for floating drilling rigs is at its highest level (48%) since 2015, according to Maersk Drilling’s latest results statement.
Demand since the end of the first quarter has improved to 110 units, and marketed utilization has risen to 68%.
Since summer 2020, the excess capacity that was restricting the recovery of the global floater market has come down substantially, the company said, due to increased demand and significant rationalizations.
The average marketed oversupply of rigs is now down to 25 rigs (versus 51 in third-quarter 2020), with demand picking up for modern, high-spec drillships. Utilization levels for seventh-generation drillships are approaching full capacity, driven by competitive markets in the U.S. Gulf of Mexico, Brazil, West Africa and Southeast Asia.
In the North Sea, Maersk Drilling noted a slight decrease during the first quarter in jackup activity with average demand declining to 28 units, while the average marketed supply remained unchanged at 37 units.
Offshore Norway, there continue to be limited tender opportunities for jackups to start programs in 2022, due to a forecast oversupply of jackups relative to demand. But the situation should improve next year based on the growing numbers of subsea development projects in Norway’s shallow waters.