Offshore drilling highlights: High paid rigs in 2H 2023

After pouring over the on hand day charge recordsdata inside of rapid situation experiences from three offshore drilling giants – Transocean, Noble Company, and Valaris – three rigs stand out as the finest-paid ones at some stage within the 2d half of 2023. Unsurprisingly, all three spots had been taken by drillships.

With offshore rig scrapping at its lowest level in years, as the offshore drilling market’s recovery intensified, frigid-stacked rigs had been being increasingly reactivated for original assignments amid rising expect and elevated day rates whereas the on hand supply of animated, non-frigid stacked rigs, especially jack-united states of americaand drillships, develop into as soon as shy hasty, in accordance with Westwood Global Energy, an energy market compare and consultancy firm.

The firm published that the marketed sixth-generation harsh atmosphere semi-submersible market develop into as soon as all provided out in 2023 after dedicated utilization jumped 14% in very finest six months. As a consequence of the boost within the semi-sub market, day rates for contract fixtures also rose, with some effectively above $400,000 – a feat no longer witnessed since 2015.

While Transocean and Odfjell Drilling managed to force day rates elevated for these sources, securing original affords with rates reported as excessive as $484,000 (Australia), $457,000 (Australia), and $420,000 (Norway), respectively, these three fixtures impress no longer originate unless the principle quarter of 2025, the principle quarter of 2024, and the 2d quarter of 2024. In the intervening time, Transocean has managed to stable affords for Transocean Equinor in Australia with day rates that scurry as a long way as $540,000 in 2027 and 2028.

Westwood’s compare reveals that original rig deal intervals peaked in 2013 for jack-united states of americaand in 2014 for floating rigs, nonetheless the length of such affords dwindled at some stage within the prolonged downturn and finally reached the trough in 2018 for floaters and 2019 for jack-ups. This has picked up steam all another time since the global rig market recovery obtained underway in 2021.

On common, awarded jack-up contract intervals luxuriate in elevated 36% when in contrast with 2021, whereas drillships luxuriate in elevated 41% and semi-subs a whopping 117%. This implies that the protect up for more oil and gas is on the upward thrust, as extra illustrated by ADNOC Offshore’s six 15-300 and sixty five days contract awards for jack-united states of americain the Center East.

The identical operator has since awarded a plethora of extra prolonged-term jack-up affords, five of which had been fastened in June 2023 for ten years apiece. Westwood believes that extra lengthening in common rig affords will be seen, as there are already ten-300 and sixty five days tenders out within the market for a pair of drillships required for campaigns foundation in early 2025.

Three top-paid rigs

Taking into account the continuing upcycle within the offshore drilling market, Offshore Energy develop into as soon as attracted to discovering out which rigs had been potentially the most easy-paid ones at some stage within the 2d half of 2023. To shed gentle on this, rapid situation experiences had been reviewed from Transocean, Noble Company, and Valaris to compare the on hand day rates and fetch out which rigs had been the finest earners in 2023.

Transocean’s rapid situation report from October 2023 indicates that the 2016-built Deepwater Proteus drillship has been moved to a day charge of $490,000. With a maximum drilling depth of 40,000 feet and a water depth of 12,000 feet, this rig has been working for Shell within the U.S. Gulf of Mexico since August 2016. The drillship develop into as soon as on a day charge of $481,000 earlier than this, in line with the rapid situation report from July 2023.

The 2d highest-paid rig in line with the rig proprietor’s newest rapid situation report is the 2018-built Deepwater Poseidon drillship, also working for Shell within the Gulf of Mexico. The rig, which has the the same drilling and water depth specs as the principle rig on this checklist, moved from a day charge of $478,000, which develop into as soon as listed in July 2023, to $487,000 in October 2023.

The third on this checklist is the 2017-built Deepwater Pontus drillship, which has been working for Shell within the U.S. Gulf of Mexico since October 2017, albeit at various rates for various sessions. The rig comes with the the same specs as the opposite two. This drillship moved to a day charge of $484,000 within the most modern rapid situation report from a day charge of $483,000 in July 2023.

Taking a glimpse on the 2 eight-generation drillships, which dazzled the enviornment with their bells and whistles upon supply, the Deepwater Titan drillship, which is working for Chevron within the U.S. Gulf of Mexico, develop into as soon as on a elevated charge than the Deepwater Atlas drillship at some stage in 2H 2023. The Deepwater Titan has been receiving a day charge of $455,000 since Also can 2023. The rig’s tackle Chevron is presently expected to full in March 2028. The rig develop into as soon as deliveredto the offshore drilling extensive on the end of December 2022.

Following the provision, the Deepwater Titan drillship develop into as soon as scheduled for deployment on a five-300 and sixty five days contract within the U.S. Gulf of Mexico. Geared up with two 20,000-psi BOPs, a 3-million-pound hook load, and five 10,000-psi mud pumps, this rig can drill up to 40,000 feet and operate in water depths of up to 12,000 feet.

What had been the finest day rates in 2H 2023 for Valaris and Noble rigs?

Noble Company’s newest rapid situation report from October 2023 reveals that the Noble Courageous drillship, which is working within the U.S. Gulf of Mexico, has been on a day charge of $450,000 from July 2023. That is anticipated to dwell in command up to January 2024, when the day charge is slated to soar to $470,000 as soon as the rig kicks off its project with LLOG. TheNoble Courageousis a excessive-specification drillship of Samsung 96K invent, accommodating 230 of us.

With a maximum drilling depth of 40,000 feet, it will operate in water depths of 12,000 feet. The 2013-built rig worked for Kosmos Energy within the U.S. Gulf of Mexico under a day charge of $450,000 from July 2023, ahead of sharp to full a one-effectively contract also within the Gulf of Mexico with an undisclosed operator under the the same day charge earlier than kicking off its project with LLOG.

On the opposite hand, Valaris’ rapid situation report from November 2023 substances out that the Valaris DS-17 drillship has been working on a day charge of $447,000 since September 2023. This 540-day contract with Equinor in Brazil is scheduled to full in March 2025. With a maximum drilling depth of 40,000 feet, the 2014-built Valaris DS-17 drillship, which is of GustoMSC P10,000 invent, can operate in water depths of 12,000 feet and accommodate 210 of us.

While many other rigs luxuriate in demonstrated that they’re price their weight in gold in line with the day rates they’ve secured for his or her newest drilling assignments, Offshore Energy determined to pick out notion to be among the rigs from every offshore drilling player as an instance of rigs that luxuriate in earned their protect in 2H 2023.

Due to the this truth, Transocean earned the tip situation as the finest-paid offshore drilling contractor whereas its Deepwater Proteus drillship develop into as soon as the finest-paid rig in 2H 2023 no longer very finest in Transocen’s rapid nonetheless also when in contrast with the on hand day rates rigs from Noble and Valaris luxuriate in tucked under their belts.

When taking a glimpse at potentially the most easy-paid rigs from other offshore drilling giants, the Deepwater Proteus drillship develop into as soon as followed by Noble Courageous with Valaris DS-17 citing the rear.