{"id":8852,"date":"2019-05-16T00:00:00","date_gmt":"2019-05-16T00:00:00","guid":{"rendered":"https:\/\/www.westwoodenergy.com\/accelerating-rig-activity-signals-game-change-as-rig-rates-are-on-the-up\/"},"modified":"2022-09-07T02:53:06","modified_gmt":"2022-09-07T01:53:06","slug":"accelerating-rig-activity-signals-game-change-as-rig-rates-are-on-the-up","status":"publish","type":"post","link":"https:\/\/www.westwoodenergy.com\/news\/accelerating-rig-activity-signals-game-change-as-rig-rates-are-on-the-up","title":{"rendered":"Accelerating rig activity signals game-change as rig rates are on the up"},"content":{"rendered":"\r\n

PRESS RELEASE<\/strong><\/p>\r\n\r\n\r\n\r\n

For immediate release<\/em><\/strong><\/p>\r\n\r\n\r\n\r\n

According to fresh insights from newly enhanced intelligence platform, <\/em>RigLogix<\/em><\/a><\/p>\r\n\r\n\r\n\r\n

(Aberdeen, UK) Thursday, 16th<\/sup> May 2019<\/em><\/strong> \u2013 <\/strong>New insights into the offshore global rig market from research consultancy, Westwood Global Energy Group<\/a>, reveal an acceleration in rig activity over the last 12 months, driving up rig rates in some areas and for certain types of rigs.<\/p>\r\n\r\n\r\n\r\n

The data comes from Westwood\u2019s enhanced RigLogix<\/a> intelligence platform which is re-launching this week with additional data and improved functionality. \u00a0The database is used by drilling contractors and operators (and service companies) for strategic planning, understanding opportunities and monitoring competition. \u00a0It is also accessed by financial analysts for independent revenue modelling and projections.<\/p>\r\n\r\n\r\n\r\n

RigLogix data shows that marketed utilisation for some rig types in some regions are nearing 85-90%.\u00a0 Historically this is the level at which day rates start to trend upwards at a more significant pace and could signal the start of a longer-term recovery. \u00a0By 2021, Westwood expects to see day rates increase by at least 15% for rigs in operation.<\/p>\r\n\r\n\r\n\r\n

Currently, the ultra-deep water (UDW) floating rig fleet is drawing a great deal of attention. \u00a0Utilisation of the 139-rig marketed fleet stands at 76.9%, with 107 units currently working\/committed, and one-third of those are contracted into 2021 or later. \u00a0Looking ahead, the Riglogix Rig Requirements function shows that worldwide there are presently over 200 drilling programs planned over the next 3-4 years that designate either a semi or drillship to be used, with the Norwegian North Sea, South America, and Africa among the regions expected to see high rig demand.<\/p>\r\n\r\n\r\n\r\n

However, whilst some regions show positive signs of recovery, overall activity for the fleet as whole is taking time to recover. \u00a0So far, 2019 utilisation growth has been encouraging but there is still room for improvement. \u00a0Overall working, marketed jackup utilisation is now nudging 70% compared to 60% only one year ago.<\/p>\r\n\r\n\r\n\r\n

\"\"\r\n
Marketed Rig Utilisation. Source: Riglogix<\/figcaption>\r\n<\/figure>\r\n\r\n\r\n\r\n

A number of notable contract signings have been made in recent months for work in several regions. \u00a0Operators in the so-called Golden Triangle (the U.S. Gulf of Mexico, South America and off the west coast of Africa) have chartered rigs, including a few at new market-high day rates over $200,000. \u00a0Although some of these fixtures include contract add-ons such as managed pressure drilling (MPD) equipment or integrated services, the numbers have been a welcome relief for rig owners. \u00a0And in Southeast Asia, several jackup contract signings have resulted in rates of $80,000 or more, a level not seen there in many years.<\/p>\r\n\r\n\r\n\r\n

Other significant trends emerging from the latest data include:<\/p>\r\n\r\n\r\n\r\n

Rig Stacking in Las Palmas<\/strong><\/p>\r\n\r\n\r\n\r\n

Las Palmas, off the Canary Islands, has become a major rig stacking area in recent years, not only due to its benign climate, which is said to have less of a detrimental impact on the rig, but also for its quick and easy access to several different regions.<\/p>\r\n\r\n\r\n\r\n

Bidding Not Limited to Rigs Already in the Region<\/strong><\/p>\r\n\r\n\r\n\r\n

Some rig owners will operate a rig at a lower day rate for a contract in a region with the hopes of securing additional work once it is there. \u00a0In addition, with so many rigs idle, rig owners now routinely bid rigs for work in other regions, and in some cases far from where the rig is currently located. \u00a0Recent contracts have been awarded for work off Senegal to rigs currently in the U.S. Gulf of Mexico; in the Mexican Gulf to a newbuild rig in China; and in Brazil to two idle rigs in Greece. \u00a0In 2018, one UDW drillship completed work in Aruba and mobilised to Malaysia for a contract there.<\/p>\r\n\r\n\r\n\r\n

The New RigLogix platform is a subscription-based service that also offers interactive forecasting tools, allowing users to manipulate key assumptions such as rig retirement rate and macroeconomic outlooks to customisable dashboards. \u00a0Forecasts are given for rig supply, demand, utilisation, and dayrates. \u00a0The \u201cRig Tenders\u201d section enables the user to keep track of upcoming global drilling opportunities.<\/p>\r\n\r\n\r\n\r\n

Steve Robertson, Head of Rigs and Wells at Westwood Global Energy Group<\/strong>, commented: \u201cAfter an extended downturn, the market is watching closely to see when improved utilisation will yield higher day rates. \u00a0In some areas, day rates are already hitting over $200,000, and continued demand for specific types of rigs is good news for the industry. \u00a0The fact that some operators are committing to rigs far in advance is a clear sign that they are anticipating further day rate rises.\u201d<\/p>\r\n\r\n\r\n\r\n

For further information on the newly launched RigLogix, please contact Steve Robertson, Head of Rigs and Wells at Westwood Global Energy Group, email srobertson@westwoodenergy.com<\/a> .<\/p>\r\n\r\n\r\n\r\n

-ENDS-<\/strong><\/p>\r\n\r\n\r\n\r\n

Issued on behalf of Westwood Global Energy Group by Flourish PR Ltd<\/strong><\/p>\r\n\r\n\r\n\r\n

For all media enquiries or to arrange an interview please contact: –<\/strong><\/p>\r\n\r\n\r\n\r\n

Flourish PR Press Office
Flourish PR Ltd
Tel: 01628 882 610
Email: press@flourishpr.co.uk<\/a>
www.flourishpr.co.uk<\/a><\/p>\r\n\r\n\r\n\r\n

Notes to Editors<\/strong><\/p>\r\n\r\n\r\n\r\n

About Westwood Global Energy Group (Westwood)<\/strong><\/p>\r\n\r\n\r\n\r\n

Westwood Global Energy Group is a leading provider of research, data analytics and consulting services to the global energy industry. Whilst we focus primarily on intelligence and insight for the worldwide exploration and oilfield services markets, our coverage also extends to the offshore renewables and power generation markets. Our analysis is independent, comprehensive and based on deep sector knowledge.<\/p>\r\n\r\n\r\n\r\n

Westwood Global Energy Group was formed in January 2015 by Energy Ventures, an energy specialist private equity firm with a vision to build a leading player in the business intelligence and data analytics space.\u00a0 Following an active period of acquisitions, the group has combined the operations of Hannon Westwood, Richmond Energy Partners, Novas Consulting, Douglas-Westwood, Energent Group Software LLC, RigLogix, and JSI Services.\u00a0Westwood Global Energy Group is headquartered in Aberdeen and has offices in London, Houston and Singapore.<\/p>\r\n\r\n\r\n\r\n

To learn more, please visit www.westwoodenergy.com<\/p>\r\n","protected":false},"excerpt":{"rendered":"

PRESS RELEASE For immediate release According to fresh insights from newly enhanced intelligence platform, RigLogix…<\/p>\n","protected":false},"author":1,"featured_media":9484,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[353,48,445,339,349,50,330,335,334,336],"tags":[251,90,59,249,187,250,143,252,99,132,244],"class_list":{"0":"post-8852","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-all_articles","8":"category-news","9":"category-offshore-energy-services","10":"category-offshore-rigs","11":"category-oilfield-services","12":"category-press-releases","13":"category-riglogix","14":"category-sectors","15":"category-solutions","16":"category-subsectors","17":"tag-canary-islands","18":"tag-deepwater","19":"tag-drilling","20":"tag-drilling-contractors","21":"tag-jackup","22":"tag-las-palmas","23":"tag-offshore-rigs","24":"tag-pressure-drilling","25":"tag-rig","26":"tag-riglogix","27":"tag-ultra-deepwater"},"acf":[],"yoast_head":"\nAccelerating rig activity signals game-change as rig rates are on the up - 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