Page 8: of Offshore Engineer Magazine (Jul/Aug 2021)

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LEADING OFF OFFSHORE RIGS

OFFSHORE RIGS

Transformation is on the Horizon

Te ofshore drilling rig market is showing remarkable signs of recovery despite having faced severe headwinds. Trow the “green rig” revolution and further consolidation into the mix, and the next few years could be a period of real transformation for the industry.

© Bomboman/AdobeStock

By Teresa Wilkie and Hans Jacob Bassoe ewind to July 2020, oil and the midst of a freefall, which according to eral signs of recovery in the offshore gas companies were cancel- the Esgian Rig Service, saw total backlog drilling rig industry of late, leading to a ling rig contracts left, right fall by 230 years, or 26%, between Janu- marked rise in optimism for the future and center. Many cam- ary and December 2020, while competi- of the industry.

R paigns that were not cancelled were fac- tive utilization fell by 12% in the same ing massive delays due to Covid-related period. This, of course, put further pres-

Contracting Doubles travel restrictions or other logistical is- sure on already subdued dayrates, mean- With thanks to the higher and more sues. Meanwhile, the oil price was on its ing further massive losses for many rig stable oil price this year, tendering and knees, hitting the lowest point of just owners, resulting in several major players contract awards are on the rise, with rig under $20 per barrel for Brent Crude, fling for Chapter 11 bankruptcy. contract backlog fnally showing signs which meant demand for new drilling That’s a tough year considering the of growth after over a year of losses. Es- programs and rig award activity came to market was only just coming out of one gian Rig Service shows that since Janu- a screeching halt. (long) downturn, only to be met by a ary 2021 until mid-July, there have been

Offshore rig contract backlog was in second. However, there have been sev- 192 contracts or extensions awarded, to- 8 OFFSHORE ENGINEER OEDIGITAL.COM