Page 47: of Maritime Reporter Magazine (June 2017)

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Since 2014 we’ve seen a signi? - this has led to even less demand have managed to remove their ing earlier this year their intention cant decline in the oil price from for vessels. The second hand mar- North Sea competitor Transocean. to restructure. Today Seadrill has 115 USD/bbl to 28 USD/bbl, with ket is unpredictable, with some In March 2017, they bought all a share price sitting at 0.58 dollars

OO a recovery to around 50 USD/bbl deals indicating a bottoming out transocean’s rigs for $1.35 bil- as opposed to a high of 46.93 in (today’s price 51 USD/bbl). There and others contradicting this. It is lion, which has kick started a lot October 2013. has been a signi? cant reduction in clear that many believe the mar- of activity within the jack up rig At the end of April 2017 Seadrill demand for vessels throughout the ket may soon turn and have seen sector. Previously most of the ac- sold three Jack Up rigs (West Tri- offshore drilling chain due to the this as an opportunity to invest in tivity concerned a small volumes ton, West Resolute, West Mischief collapse in the oil price and the high distressed offshore drilling assets. of resales or at auction sales with for a total of $225 million) to costs associated with offshore oil John Fredriksen’s former right older assets, for example the 70s Shelf Drilling as part of a push to

RR extraction. This has led to a crash in hand man, Tor Olav Troim is tak- and 80s built jack up rigs belong- raise capital. However these rigs vessel utilisation and asset values. ing advantage of the presumed ing to the now bankrupt Hurcules. were valued at $415m therefore

This market downturn has cre- bottom of the market and has On the other hand, the current Seadrill recorded a loss of $190 ated mixed results. Ef? ciencies managed to raise heavy invest- market has been hurting John mil. Since the Borr drilling acqui- have vastly improved and some ment from capital markets and Oil Fredriksen’s Seadrill, who is go- sitions, these Seadrill sales are a drillers are able to maintain a prof- giant Schulumberger in Decem- ing to great lengths to keep their good price, even though the ves-

EE it at the current oil price, however ber 2016. With this money, they head above water after announc- sels are signi? cantly older.

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