Page 17: of Offshore Engineer Magazine (May/Jun 2023)

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MARKETS THE RIG MARKET

Figure 1 t’s hard to believe that once upon a time the Middle was in turn followed by the further blow of the Coro-

Eastern jackup segment comprised of less than 60 navirus pandemic in 2020. During this era, committed units when today marketed supply sits just shy of utilisation averaged just three percentage points behind three times that amount (180 units). Over the past the 2000-2010 period at 82%.

I two decades, this region has suffered similar blows as the The last two-and-a-half years have been even more in- rest of world off the back of oil price crashes and global teresting for this distinct. Averaging out at a whopping pandemics, but overall, supply and demand growth has 95% committed utilisation between January 2021 and been monumental, and it doesn’t appear to be showing May 2023, and reaching the current high of 97% (as of signs of slowing. late May 2023), demand has been steered by NOCs’ re-

The area is driven majorly by national oil companies newed focus on increasing domestic oil and gas reserves (NOCs), such as Saudi Aramco, ADNOC and Qatar Gas’, and production through additional exploration and de- operations in shallow waters. Between 2000 and 2010 sup- velopment drilling campaigns. During this period, jackup ply of jackups in the area increased 87%, from 60 to 112 demand increased by 27% (37 rigs) and supply reacted as rigs, off the back of 96% demand growth in the same pe- needed in line with this growth at 26%. riod. Utilisation during this 10-year cycle averaged out at a strong 85%.

Contracting activity of the scale

Although it slowed in comparison to the previous Highlighting just how serious these operators are to period, the next decade of 2011-2020 brought further ramp up activities is the enormous number of awards growth of 31% in supply and 57% in jackup demand, that have been made during the most recent period. despite lower oil prices and a market downturn, which For instance, from 2010 to 2020 awarded contract days

MAY/JUNE 2023 OFFSHORE ENGINEER 17