At the 25th annual Marine Money conference in New York this week, Andreas Stubsrud, Head of Research at Pareto Securities, predicted a need for 200 new jack up rigs as nearly half of the 450 jack ups worldwide approach their 40th birthdays by 2020.
Rowan says they see the need for an additional 15 jack ups off Saudi Arabia driven largely by the need for natural gas production for domestic use.
At present, there are 89 rigs on the global order books, with the majority arriving in 2013.
Stubsrud also notes those rigs which are currently in a “cold stacked” status will likely never return to service. He notes that 22 of the past 23 rigs which have been cold stacked have been scrapped.
Even with a quarter of the global jack up fleet located in the middle east, there are other areas worldwide that continue to support demand such as west Africa, Libya, Indonesia and Mexico. Stubsrud predicts that although the global consensus is that jackup day rates will remain flat, the data supports an improvement in day rates.
Sapphire Driller, an ABS-classed,Baker Marine Pacific Class 375 jack-up built by PPL, image: Vantage Drilling
Yesterday, Vantage Drilling Company (NYSE Amex: VTG) announced that it had received two contract awards for the Sapphire Driller adding an additional well to the Sapphire Driller’s current drilling program and three wells from another customer in the Ivory Coast. The contracts will commence in continuity with the current drilling program and have an anticipated duration of approximately 215 days. The contract awards will generate an estimate $34.5 million of revenue, net of taxes.
Additionally, the Emerald Driller’s customer in Thailand has exercised their six month option, extending the current contract through the middle of 2013. The exercise of the option adds approximately $23.4 million of backlog.
Vantage Drilling owns fleet of four Baker Marine Pacific Class 375 ultra-premium jackup drilling rigs and two ultra-deepwater drillships, the Platinum Explorer and the Titanium Explorer, as well as an additional ultra-deepwater drillship, the Tungsten Explorer, now under construction.
By Verity Ratcliffe (Bloomberg) –Sun-scorched expanses and steady Red Sea breezes make the northwest tip of Saudi Arabia prime real estate for what the kingdom hopes will become a global...
By Andrea Shalal (Reuters) – The United States is urging European allies and private companies to halt work that could help build the Nord Stream 2 natural gas pipeline and...
By Jennifer Hiller HOUSTON, Nov 30 (Reuters) – Exxon Mobil Corp on Monday said it would write down the value of natural gas properties by $17 billion to $20 billion,...
December 1, 2020
Total Views: 1167
Sign Up Now for gCaptain Daily
Just enter your email and get hot news every morning
SIGN UP
Get the latest gCaptain articles and breaking news
Sign up for gCaptain Daily
Get the latest gCaptain articles and breaking news
We use cookies on our website to give you the most relevant experience. By clicking “Accept”, you consent to the use of ALL the cookies.
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.