Page 19: of Offshore Engineer Magazine (May/Jun 2023)

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MARKETS THE RIG MARKET

Figure 3 stacked jackups, which could in theory be considered for ing was witnessed in 2019, but then quickly slashed again reactivation, over 60% have been idle for fve years or more. during the pandemic.

While in terms of stranded or newbuild capacity, there is a Between late 2020 and the present day, however, aver- choice of 17 jackups in Chinese and Singaporean shipyards. age leading edge dayrates for jackups in the Persian Gulf have increased 118% to an average of $109,000 per day in late May 2023. Over the past year, fxtures have been

Dayrates heading northward

With the combination of tightening jackup supply and awarded at a low of $70,000 to a high of $155,000 per growing demand, both regionally and globally, this has day. Recent market sentiment suggests that as the sup- brought about a spike in dayrates, especially in the Persian ply/demand gap continues to restrict, combined with

Gulf area. Between early 2015 and late 2018, dayrates in reactivation and newbuild delivery cost economics plus this area were almost halved from a high of $117,000 per infationary pressures, dayrates in the region are set to day to just above $50,000 per day. Some recovery in pric- continue their northward trajectory.

MAY/JUNE 2023 OFFSHORE ENGINEER 19