Page 10: of Offshore Engineer Magazine (Sep/Oct 2022)

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MARKET REPORT JACK-UPS © Lukasz Z/AdobeStock

Te Great

Jack-up Revamp

Middle East NOCs reshape the global jack-up market.

By Pamela Cordova, Sr. Rig Analyst, S&P Global Commodity Insights ecently, numerous operators looking to charter increase by up to 20 more rigs.

jackups over the next three years have found At present, the operator has plans to almost double its themselves with greatly reduced available op- feet, which in the past 10 years has averaged 45 jack-ups,

R tions and offered much higher day rates than to 92 contracted jackups by the end of 2023. The increase expected: what has caused this sudden tightening of the can be seen in Graph 1 below. Currently, the operator has jack-up market? 50 rigs under contract and at the time of writing will have

For the past fve years until recent months, the distressed 78 contracted by mid-2023. It is in the midst of contract- and oversupplied jack-up market had little prospect of see- ing about 14 more.

ing marketed utilization above 90%. Stranded jack-ups in In addition, the UAE has production targets to meet, shipyards and ports across the world had slim chances of so Abu Dhabi’s ADNOC Drilling, is progressing its feet picking up work. But this started to change in mid-2021 expansion. It has purchased 13 units in the past two years when Saudi Aramco announced plans to increase its jack- and is in the process of purchasing additional units.

up feet by 20 incremental units through multi-rig tenders. These two national oil companies alone are absorbing

Then, in the frst half of this year it announced plans to about 55 jack-ups (including those recently contracted but 10 OFFSHORE ENGINEER OEDIGITAL.COM