Jack-up market on the upswing, says new report

Drilling rig contracting activity has picked up sharply since mid-April, driven by NOCs signing new multi-year contracts for jack-up rigs.

According to Evercore ISI’s latest Offshore Rig Market Snapshot, overall 38 contracts were announced for 67 rig years from mid-April to mid-May, with jack-ups accounting for 23 contracts and 58 rig years while 15 floater contracts were signed for a “modest” nine rig years.

The Middle East led with 11 of 23 jack-up contracts, including four multi-year contracts each for Saudi Arabia and Qatar. Including a couple of multi-year contracts signed for ONGC offshore India, there were 11 term jack-up contracts signed in April versus only two for floaters in Australia and Brazil. Saudi Aramco also renewed six additional jack-ups in the first half of May.

Overall, Evercore says that jack-up terms are averaging 538 days year-to-date, which is up 15% year-over-year and up 60% from the 2018 trough.

Source: Offshore Magazine