my god...two more new drillships ordered today!

[c.captain]

This time it's Noble going to Korea (finally!) for delivery in 2013. Let's see right now they have two in Singapore, two in China and now two in Korea. Except for the two in Singapore which are only partially manned at the moment, they have squat for personnel to put on these ships. Where on god's green earth do they (and everybody else for that matter) expect to find them!

Anway, here's the press release:

[tengineer]

This time it's Noble going to Korea (finally!) for delivery in 2013. Let's see right now they have two in Singapore, two in China and now two in Korea. Except for the two in Singapore which are only partially manned at the moment, they have squat for personnel to put on these ships. Where on god's green earth do they (and everybody else for that matter) expect to find them!

Anway, here's the press release:

They can get marine crew from Croatia, Greece, Phillipines etc. The drilling crew? Now that's another question entirely. Ultradeepwater is tricky stuff and unless Noble has a personality transplant they aren't going to get the cream of the crop, they'll be lucky to get anybody if business picks up as predicted. Maybe they are setting themselves up to be bought by.....Seadrill, Maersk or someone else?

[jrfitzny]

Seadrill is ordering up some new steel as well...and now Aker is getting into the drilling business.

I hope they're not overbuilding.

[c.captain]

Maybe they are setting themselves up to be bought by.....Seadrill, Maersk or someone else?

I doubt it, Noble is sitting on a butt load of cash so is not very attractive as a take over plus just about everything they have is bloody shyte. One of the oldest fleets in the world.

I think that it is the other way round and that they are quietly looking and waiting for the moment to jump. I am kind of surprised that they went for two more newbuilds of their own rather than go for somebody elses newbuilds like maybe Pride's? In fact, I am kind of surprised that they haven't boughtout Pride entirely! I wonder what Pride's asking price is?

Of course, the question about where the people will come from is another matter. Even if they cold stack or scrap half of their fleet, the people aren't qualified to move over to the deepwater. There's at least 50 miles between a 1970's J/U and a 2011 6th gen semi or drillship. Gonna have to suck it up and start doing what it takes to get and keep the talent. The problem is that there is at least 50 miles between where their 1970's mindset is in HR and recruiting and the rest of the deepwater drilling industry of 2011. They've made some baby steps but that is what they are...just baby steps!

Stay tuned for further developments as they come in...

[c.captain]

Below is a list of all drillships currently under construction or on order. Credit for the list goes to http://shipbuildinghistory.com/today...igsonorder.htm with corrections made by me for rigs already delivered or ordered after the original list was compiled. I count 36 with most scheduled for deliver this year and the remained in 2012 and 2013. This is one shitload of drillships!



If there are any I have missed or already delivered, please let me know and I will correct the list. Also a list of semisubmersible rigs under construction or on order will be added as well.

One thing I believe is that this is not the end of the deepwater ship/rig newbuilding boomand that during the remained of 2011 we'll see many more added to this list.

[c.captain]

Here is the list of semisubmersibles under construction or on order

[anchorman]

Here is the list of semisubmersibles under construction or on order

Pacific is looking at building up to 6 more if the market continues. Just read that in Bloomberg.

[c.captain]

Pacific is looking at building up to 6 more if the market continues. Just read that in Bloomberg.

Yup...saw that.

[anchorman]

Yup...saw that.

Dahlman downs four
Dahlman Rose has reduced its ratings on Seadrill, Diamond Offshore, Atwood Oceanics and Ensco from “buy” to “hold” as drilling contractors race to place speculative newbuilding orders.


Analyst Omar Nokta says he is concerned that the flood of shipbuilding activity may “keep a lid” on dayrates for units operating in the ultra-deepwater market, with levels set to fluctuate between an estimated $400,000 and $450,000 per day.
In a note to clients, he wrote: "Drilling contractors have placed orders for 10 speculative UDW [ultra-deepwater] rigs since November and have secured options for eight more, the most rapid ordering pace since dayrates were skyrocketing in early 2006.

“These orders seem driven by a weaker earnings outlook due to aging company fleets as opposed to a tightening market. Attractive shipyard prices and payment terms have also played a role in encouraging orders.”

While Nokta believes the long-term outlook for the ultra-deepwater demand remains strong, he says there is more than enough capacity available in the near term.

“The pace of orders suggests the UDW market has tightened considerably, yet there are three rigs currently available for contract. Another 17-18 rigs will either roll off contract or complete construction before the end of 2011, along with 15 more in 2012.

“This dynamic varies from the 2005-2007 ordering cycle when the nearest rig available for contract was at least 12 months away and only five to six more would free up within 24 months. We note that these latest orders have come following some stability in dayrates, as opposed to the last cycle when dayrates were surging.”

Dahlman Rose held onto its “hold” ratings for shares of Noble, Pride, Rowan and Transocean.

By Aaron Kelley in Stamford

[c.captain]

now it's Atwood Oceanics ordering a newbuild drillship at Daewoo

read the announcement here

I still say it's madness! MADNESS!

[seadawg]

IMHO..click here for "The Motley Fool" take on this..good data!!

http://www.fool.com/investing/genera...asualties.aspx

[c.captain]

Thanks for the article...interesting reading. So I need to add to my drillship list the one ship for Atwood Oceanis, two for Aker and maybe six more for Pacific. So that would make 36 plus 3 for 39 and perhaps as many as 45 still to be built and delivered. There was also Maersk Drilling's announcement that they wanted to build two rigs per year and who the hell know how many others are going to keep pumping air into this balloon? When will it burst?

[seadawg]

IMHO..balloon??burst??thanks to the emerging super economies the international demand for petroleum is projected to be strong into the next century..all the while the US will be going green and chasing windmills..where is Don Quixote when you need him!!

[c.captain]

Even more to add to the list

1. Noble Drilling adds a third ship to the two ordered from Hyundai with an option for another still (which I am told will be exercised before the end of the summer)

2. Aker ASA has formed a drilling unit and has ordered two from Daiwoo (DSME) with options for two more (previously mentioned above but now with more info on Aker Drilling)

No stopping the music but as the lady said...

Drill baby...DRILL!

[Orniphobe]

Two more from SHI for Pacific Drilling. Announced at yesterday's Naming Ceremony for the Pacific Scirocco.

[c.captain]

Two more from SHI for Pacific Drilling. Announced at yesterday's Naming Ceremony for the Pacific Scirocco.

Madre de Dios!

[c.captain]

Here is a press release from Samsung stating that two more ships were ordered on Wednesday by an undisclosed buyer. Is it Pacific again?

Jumping Jehosaphat Batman! Will this insanity never end?

[cmjeff]

It looks like Korean investors are happy.... or at least they are no longer wanting to kill themselves.

Hyundai Merchant Marine Co., the biggest unit of South Korea’s Hyundai Group, surged in Seoul trading after shareholders rejected a proposal to increase the preferred stock sales limit, raising speculation it may become a takeover target.
Hyundai Heavy Industries Co., owner of a 23.8 percent stake in South Korea’s second-biggest shipping line, and three other companies with holdings voted against the plan at a shareholders meeting, Hyundai Group said in a statement today.
The opposition by Hyundai Heavy and companies owned or managed by family members of the divided Hyundai empire signals that the company intends to take over Hyundai Merchant, according to Hyun Jeong Eun’s Hyundai Group.
“The action by Hyundai Heavy today shows that Hyundai Heavy hasn’t given up its ambition to take over Hyundai Merchant,” Hyundai Group said in the statement. “They have also blocked Hyundai Merchant’s plan to invest in the future and that could eventually undermine shareholders’ value.”
Hyundai Elevator, South Korea’s largest maker of lifts, today said it will buy about 1.3 million Hyundai Merchant shares to increase its stake to 22.62 percent. The purchase is to ensure management control of the shipping line, the company said in a regulatory filing.
Shares Climb

Hyundai Merchant gained 3.1 percent to close at 33,200 won in Seoul, bringing its surge this week to 18 percent, its biggest weekly advance since June. Hyundai Elevator Co., the biggest single shareholder of the shipping line and a unit of Hyundai Group, climbed 3.3 percent to 110,000 won.
Hyun took over the management of Hyundai Group after her husband Chung Mong Hun committed suicide in 2003. She lost to her brother-in-law and Chairman of Hyundai Motor Group, Chung Mong Koo, in a bidding contest for control of Hyundai Engineering & Construction Co. earlier this year.
Hyundai Heavy, Hyundai Department Store Co., Hyundai Development Co. (012630) and KCC Corp. (002380) rejected the plan to increase the limit of preferred shares to 80 million from 20 million, Hyundai Group said. KCC is owned by Chung Mong Koo’s uncle.
“We opposed the plan because it wouldn’t be in the best interest of the shareholders, nothing more or less,” Hyundai Heavy said today in an e-mailed statement. “If the company really needs the money, they can always use the 120 million of common shares available to them.”
Hyundai Merchant planned to use the funds to expand its fleet to compete against bigger rivals such as A.P. Moeller- Maersk A/S and Orient Overseas (International) Ltd., which have ordered new vessels this year as global trade expands, according to the Hyundai Group statement.