Marine Link
Monday, October 16, 2017

THE OFFSHORE DRILLING

Offshore Rig Counts Unchanged

The number of mobile offshore drilling rigs under contract is unchanged from last week, according to Offshore Data Services' weekly mobile offshore rig count. In the U.S. Gulf of Mexico, 139 of 190 mobile offshore drilling rig are under contract this week. U.S. Gulf drilling fleet utilization is 73.2 percent. Among the working rigs is a new deepwater drillship, which has moved to its first drilling location. In the North Sea, Mediterranean Sea and other European waters, 77 of 107 mobile offshore drilling rigs are under contract. European offshore rig utilization stands at 72.0 percent. Worldwide, 472 of 631 existing mobile offshore drilling rigs are under contract. Worldwide offshore rig utilization is 74.8 percent. In addition to the 631 existing mobile offshore drilling rigs, another 37 are under construction, including 30 deepwater rigs.

Drilling Sector May Have Missed Chance For Consolidation

Despite the announcement of a large offshore drilling merger this summer, the fragmented industry may have missed its chance for further consolidation due to a recent swift cyclical upswing, according to analysts. Shlumberger Ltd.'s announcement in July that it would merge its offshore drilling unit, Sedco Forex, with Transocean Offshore Inc., to form the world's largest offshore driller, was expected to set off a wave of consolidation in the industry

Offshore Rig Demand Rises In U.S., Falls In Europe

Rig demand increased in the U.S. Gulf of Mexico and declined slightly in Europe, following a pattern that is likely to be repeated through the end of this year at least. According to Offshore Data Services' weekly mobile offshore rig count, the U.S. Gulf rig count increased by three rigs since last week. Today, 136 of the region's 187 mobile offshore drilling units are under contract and U.S. Gulf mobile offshore rig utilization is 72.7 percent.

Rig Counts Fall Since Last Week

The U.S. Gulf of Mexico offshore rig count lost some of the ground it had made up in the last few weeks, according to Offshore Data Services' weekly mobile offshore rig count. The U.S. Gulf offshore rig count fell by two rigs on a week-to-week basis. The decline ends a five-week rally of higher utilization rates in the region. This week, 133 of 188 mobile offshore drilling units in the U.S. Gulf are under contract. U.S. Gulf rig utilization is 70.7 percent.

Little Change Seen In Offshore Rig Counts

Offshore rig activity changed little from last week, according to Offshore Data Services' weekly mobile offshore rig count. In the U.S. Gulf of Mexico, 145 of 191 mobile offshore drilling rigs are under contract this week, a one-rig decline compared to last week. U.S. Gulf drilling fleet utilization is 75.9 percent. In European waters, 74 of 107 mobile offshore drilling rigs are under contract this week, a one-rig increase compared to last week

GlobalSantaFe Worldwide SCORE Slightly Down

Worldwide oil and gas drilling contractor GlobalSantaFe Corporation reported that the company's worldwide SCORE, or Summary of Current Offshore Rig Economics, for October 2003 was down 0.2% from the previous month's SCORE. GlobalSantaFe's SCORE compares the profitability of current mobile offshore drilling rig dayrates to the profitability of dayrates at the 1980- 1981 peak of the offshore drilling cycle. In the 1980-1981 period, when

Global Marine SCORE Up 7.2%

Global Marine reported that the company's worldwide SCORE, or Summary of Current Offshore Rig Economics, for April 2001 increased by 7.2 percent over the previous month's SCORE, marking the 20th consecutive month-to-month increase. Global Marine Chairman, President and CEO Bob Rose said, "April's SCORE reflects the continuing improvement in key international offshore drilling markets. As these markets begin to go head to head to attract equipment away from the Gulf of Mexico

GlobalSantaFe June SCORE Up 1.8 Percent

GlobalSantaFe Corporation reported that the company's worldwide SCORE, or Summary of Current Offshore Rig Economics, for June 2006 was up 1.8 percent from the previous month's SCORE. GlobalSantaFe's SCORE compares the profitability of current mobile offshore drilling rig dayrates to the profitability of dayrates at the 1980- 1981 peak of the offshore drilling cycle. In the 1980-1981 period, when SCORE averaged 100 percent

Canada Announces Arctic Offshore Drilling Rules

The National Energy Board (NEB or the Board) released filing requirements today for future applications to drill in the Canadian Arctic Offshore. The Filing Requirements, a companion document to The Past is Always Present, Review of Offshore Drilling in the Canadian Arctic, Preparing for the Future, follows several months of extensive consultation carried out across the North during the NEB’s Arctic Review. During the Arctic Review

Diamond Offshore to Release Quarterly Fleet Status Report

Photo: Diamond Offshore

Diamond Offshore Drilling, Inc. informs it will issue its future fleet status reports each calendar quarter concurrent with the release of its quarterly earnings.   Diamond Offshore has historically issued its fleet status reports on a monthly basis, but has decided to change to quarterly reporting to better protect sensitive customer and contract information in light of competitive dynamics in the offshore drilling industry, the company explained.

Seadrill Files Chapter 11 Bankruptcy Protection

WEST GEMINI. Photo: Seadrill Limited

 Seadrill Limited, one of the world’s largest offshore drilling companies, has filed for Chapter 11 bankruptcy protection at the Southern District Texas court, Reuters reported.   The indebted oil rig firm controlled by Norwegian billionaire John Fredriksen is seeking to restructure its roughly $10 billion  debts as the petroleum industry continues to grapple with low prices.   Seadrill announced that the court overseeing the Company's chapter 11 restructuring

Transocean Retires Six Floaters

Photo: Transocean

 Transocean announced its intent to retire the ultra-deepwater floaters GSF Jack Ryan, Sedco Energy, Sedco Express, Cajun Express, and Deepwater Pathfinder, and the deepwater floater Transocean Marianas.    The rigs will be classified as held for sale and will be recycled in an environmentally responsible manner. All six rigs were previously cold stacked.   The company will recognize an impairment charge of approximately $1

Offshore Rig Firms See End to Historic Downturn

Aker BP recently awarded a contract worth up to $68 million to Odfjell Drilling for the lease of the semi-submersible drilling rig Deepsea Stavanger in the Norwegian Sea and the Barnts Sea (Photo: Aker BP)

Demand for offshore rig rental globally is starting to recover from its worst ever downturn, led by oil firms' growing demand for harsh-environment exploration and triggering multi-billion dollar tie-ups among drillers hoping to profit, executives said.   While the 2014-2016 oil price crash caused firms to cut exploration budgets, ending a boom in rig demand and bankrupting many owners, energy companies are now seeking to replenish their hydrocarbon reserves.  

Ensco Completes Acquisition of Atwood Oceanics

Photo: Ensco

Ensco plc announced today that Ensco shareholders voted to approve the allotment and issuance of Ensco Class A ordinary shares to shareholders of Atwood Oceanics in connection with the all-stock acquisition of Atwood at the Company’s general meeting of shareholders on 5 October 2017.    The final results of the general meeting of shareholders held today indicate that 65% of the shares cast at the meeting voted in favor of this proposal.  

GE, Maersk Drilling Accelerate Digital Partnership

 The image shows Maersk Drilling’s rig Integrator. Photo Credit: Maersk Drilling

The 'digital revolution' continues in earnest in the maritime and offshore energy sectors, driven by new pilot programs with positive results such as GE (NYSE: GE) and Maersk Drilling, which announced this morning an extension of the scope of their digital partnership following the positive results of a pilot probem, with the bottom line focus of enhancing drilling productivity. During the extended partnership, Maersk Drilling and GE will expand the scope of the 2016 pilot project—one

Lundin Extends Contract for Ocean Rig

Image: Ocean Rig

 Ocean Rig UDW, contractor of offshore deepwater drilling services, has announced that Lundin Norway AS, has declared their third option to extend the existing contract of the Leiv Eiriksson.    In addition, Ocean Rig has granted Lundin 2 additional options to drill further wells in the future.   As a result of these developments, the rig now has firm employment until at least the end of September of 2017 and should Lundin exercise its additional seven one-well options

Paragon Offshore Comes Out of Bankruptcy

Photo: Paragon Offshore

 Paragon Offshore Group announced that it has emerged from bankruptcy after completing a restructuring that eliminated USD 2.3 billion of debt.   The successor company to Paragon Offshore PLC , which filed for bankruptcy in February 2016 with USD 2.96 billion of debt, also named a new board of directors. The search for a new CEO is underway.   "The plan of reorganization under chapter 11 of the United States Bankruptcy Code substantially de-levers the company’s

Schlumberger to Acquire Majority Stake in Eurasia Drilling

Photo: Eurasia Drilling Company

 Russia's Eurasia Drilling Company (EDC) said on Thursday it would sell a 51 percent stake in the company to the oilfield services provider, U.S.-based Schlumberger NV.   The agreement is subject to approval by the Federal Antimonopoly Service of Russia (FAS), the company said. Financial terms of the deal were not disclosed since it is subject to approval.   The agreement, if approved, would extend a strategic alliance with Schlumberger that dates to 2011, Eurasia added.

Mermaid Maritime Wins Subsea Charters

Image: Mermaid Subsea

 Thailand-based Mermaid Maritime, a subsea and offshore drilling services company, has  been awarded two subsea contracts with a combined estimated value of $4.6 million.    The company press release said that the first contract award will involve a short ROV campaign for pipeline touchdown monitoring for an international EPCIC contractor offshore in the Middle East GCC.   The second contract award, with work scheduled to commence in the fourth quarter of 2017

28% of Offshore Vessels Currently Laid Up

© Björn Wylezich / Adobe Stock

Using VesselsValue's Offshore mapping service VV, Senior Offshore Analyst Charlie Hockless has put togther a snapshot showing the percentage of the offshore fleet currently laid up. Across all offshore types, 28 percent of the fleet is currently laid up. PSVs top the table, with 36 percent currently laid up. Hockless explained the definition of laid up used in this context: “Estimating the number of vessels in lay-up is an imperfect science

Transocean to Buy Songa Offshore

(File photo: Songa Offshore)

About 77 pct of Songa shareholders have so far accepted deal.   Transocean, one of the world's biggest drilling rig operators, has agreed a deal to buy Norwegian competitor Songa Offshore for 9.1 billion Norwegian crowns ($1.1 bln), the two companies said on Tuesday.   The deal, which would be mostly paid for in shares and convertible bonds, would strengthen Transocean's position in offshore drilling as Songa is Norwegian oil major Statoil's largest drilling service provider.

Latest Gulf of Mexico Auction Signals Offshore Return

© Mike Mareen / Adobe Stock

Major oil producers pushed up high bids at a Gulf of Mexico offshore auction to $121 million on Wednesday, a nearly seven-fold increase from a year ago, as their return to deep water exploration gained momentum.   This compared with $18 million in high bids at the Bureau of Ocean Energy Management's (BOEM) Outer Continental Shelf auction last summer.   Winners will be announced after a 90-day review.  

DoJ Closes Vantage Probe Over Petrobras Deal

Photo: Vantage Drilling International

 Vantage Drilling International, announced  that it has received a letter from the United States Department of Justice (DOJ) acknowledging Vantage's full cooperation in the DOJ's investigation concerning possible violations by Vantage of the Foreign Corrupt Practices Act, and indicating that the DOJ has closed its investigation without any action.    The investigation arose in 2015 from allegations of improper payments to former officials of Petróleo Brasileiro S

Seadrill to Seek Bankruptcy Protection

Photo: Seadrill Limited

 Once the biggest offshore rig firm by market value, Seadrill plans to begin its Chapter 11 debt restructuring in the coming weeks, WSJ reported.   The Bermuda-based company, controlled by Norwegian shipping magnate John Fredriksen,  has a plan to restructure around $10 billion in debt.   Seadrill, one of the world’s largest offshore drilling companies, operates a fleet of 68 rigs and drillships for customers including Total SA, Petrobras and Exxon Mobil Corp

Borr Drilling Aims to Expand Fleet, Keep Costs Low

Borr Drilling, the Norwegian drilling start-up, which listed on the Oslo exchange on Wednesday, said it aimed to expand its fleet, taking advantage of its low cost base. The start-up, launched last year and backed by the world's biggest oil service firm Schlumberger, said it aimed to have the lowest cash break-even costs in the industry and would take advantage of current low prices for rigs. "We have no debt

Maritime Reporter Magazine Cover Oct 2017 - The Marine Design Annual

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