Page 15: of Offshore Engineer Magazine (Mar/Apr 2023)

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MARKETS THE RIG MARKET

Dayrates moving higher What’s next for the region?

As has been previously reported by RigLogix, dayrates In addition to rising supply, demand, utilisation and across most rig types and regions have been rising rapidly dayrates in this region, other indications of a market re- with global foater dayrates on average 9% higher than this covery include increasing contract duration and options time last year and 49% higher than the same period in being exercised on a more regular basis. Also, further ton- 2021, and the African foater market is no exception. nage is set to enter the region this year with newbuild

Although dayrates in the region have not recovered drillship Deep Value Driller already confrmed for Eni’s to the same sort of levels (circa $400,00-$550,000 per long-term campaign off Cote d’Ivoire, while another rig day) recorded pre-oil price crash in 2014, there has been from the North Sea, Deepsea Mira, will be mobilised in a noticeable upward movement. Since the lowest year of to work off Namibia. demand in the region in 2018 until the frst quarter of There are a few multi-year requirements remaining in the 2023, dayrates for semis have increased on average 69% market from the likes of Angola’s Azule Energy, as well as ($133,000), while drillship dayrates have increased by several shorter-term exploration campaigns for work start- 168% ($238,000). In the past year alone, foater dayrates ing in 2023 and 2024. With the market close to sold out it overall have increased on average 24% ($69,000). is likely that more rigs will be brought in to cover this ad-

During the frst quarter of 2023, African drillship day- ditional demand. We expect to see further newbuilds being rates have been fxed at a high of $380,000, while a semi bid into the region as well as units from areas with weaker was secured at a dayrate of $325,000. However, it should demand, such as the North Sea. Additionally, with the im- be noted that some of these contract values and dayrates provement in dayrates, it is also likely that some drilling include a mobilisation and/or demobilisation fee which contractors will evaluate the possibility of reactivating cold can signifcantly amplify the “clean” dayrate. stacked units, if the right terms can be agreed.

MARCH/APRIL 2023 OFFSHORE ENGINEER 15