NEW YORK CITY – The drilling rig newbuild orderbook is ending 2022 with only 18 jackups and 20 floaters available, down from 28 and 21 at the start of the year, according to Evercore ISI’s latest Offshore Oracle Report.
While the majority of jackup sales have been driven by Middle Eastern contractors (ADES, Arabian Drilling, ADNOC Drilling), China’s Sinopec and COSL and Italy’s Saipem have also added to their fleets.
Saipem recently exercised a purchase option with Samsung for the Santorini, a leased seventh-generation drillship it has operated for Eni in the US Gulf of Mexico since November 2021. The Santorini is scheduled to roll off contract next September, but Saipem expects to recover the $230-million purchase price within five years and generate a return of at least 15% on its investment. The Santorini was originally ordered by Ocean Rig for $600 million in September 2013 for delivery in December 2015.
A sister newbuild, the Crete, has a similar $245 million purchase option from UK-based Stena Drilling and is one of four newbuilds Samsung has available. While Stena has plans to upgrade the seventh-generation Crete with hybrid technologies and batteries, the company has yet to book a suitable contract for the future Stena Evolution.
Purchase options are outstanding on three additional newbuild floaters, including Valaris’ DS-13 and DS-14 for $119.1 million and $218.3 million, respectively, expiring on Dec. 31, 2023.
Transocean has also reportedly entered into a joint venture Liquila Ventures to purchase the former West Aquila from Daewoo for approximately $200 million. One of only 12 rigs in the world with a 2.8-million-pound hookload, the company is marketing the seventh-generation dual-activity drillship for work in the Golden Triangle of Brazil, West Africa, and the Gulf of Mexico ahead of its 3Q 2023 delivery.
With all 16 newbuild floaters currently scheduled for delivery in 2023 uncontracted, along with 13 jackups, “we believe less than half are likely to be accepted in 2023 due to ongoing shipyard and labor constraints,” the report commented.
12.22.2022
