Page 13: of Offshore Engineer Magazine (Jul/Aug 2023)

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MARKETS OFFSHORE DRILLING RIGS under $20 million but estimates for other rigs pending re- Finally, ARO Drilling must be mentioned. In 2018, activation are reported to be as much as $40 million. Re- the company agreed to supply Saudi Aramco with 20 new quired reactivation time is six to nine months, depending jack-ups over a 10-year period.

on yard availability. The frst two were ordered in 2020, but none since. De-

Despite the high price tag, it is not out of the question livery of those was scheduled for 2022 but slipped into this that some jack-ups will eventually be ordered. year after delayed completion of a new shipyard in Saudi

Of the current 438 marketed jack-ups in the global feet, Arabia to build the rigs.

100 are 40 years of age or more, 23% of the feet. Assuming the remaining 18 rigs are ordered, it raises the

While fewer than 10 of the 100 are idle, it is doubtful question of whether there would be a need for additional that kind of usage can be sustained for many more years. newbuilds.

Rumors afoot indicate operator interest in newbuilds. A Westwood believes the reasons not to build a new rig few super majors, citing current climbing rig costs, could outweigh the reasons to build at present.

reportedly offer initial contract terms that might entice rig Although rig owners have historically not been known owners to dip their toes in new construction. for their discipline, this time is different, or at least it ap-

In addition, at least three jack-ups that previously retired pears to be. No speculative rig reactivations have been car- with the intent of converting to wind farm installation ves- ried out and there does not seem to be any appetite to sels, will reportedly re-enter the feet as drilling units. repeat the overbuilding mistakes of the past.

july/august 2023 OFFSHORE ENGINEER 13