Page 8: of Offshore Engineer Magazine (Jan/Feb 2024)

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MARKETS OFFSHORE DRILLING RIGS

With Utilization Peak

Reached in 2023, North Sea

Jack-Ups Set for Flat 2024?

Global jack-up marketed utilization has been on an upward trajectory since 2017, reaching its peak of 94% at the end of 2023. However, the outlook for the year ahead looks somewhat fat, though there is still time for new demand.

By Kathleen Gammack, Senior Rig Market Analyst, Westwood Global Energy he North Sea jack-up market has improved

Shrinking Supply Follows Lower Demand year-on-year since 2017, except for a blip in

Between J anuary 2018 and October 2021, a total of 18 2020 when the pandemic kicked in. However, units left the feet and were either sold for non-drilling booming demand isn’t the main driver behind purposes, converted to Mobile Offshore Production Units

T this but instead a shrinking feet.

(MOPUs) or scrapped.

According to RigLogix data, North Sea committed utili-

Additionally, during December 2021, Noble Highland- zation of the marketed feet was at a low of 54% in Febru- er became idle. In July 2022, Borr Drilling’s Ran relocated ary 2017, which was represented by a supply of 46 units to Mexican waters, and in February 2023 Valaris took the with only 25 units committed. decision to preservation stack Valaris Viking ‘due to on-

Committed utilization steadily increased to 89% for going weakness and uncertainty being seen in North Sea ear of 2019, however plunged 23% during the jack-up market over the next year’.

the full y pandemic, with 25 units committed of a total 40 supply

Between the last quarter of 2023 and the time of writ- units, reaching a trough of 66% on average for 2020, ing, fve units completed offshore campaigns. with the lowest point of 55% marked during October

All of these units have future work in place, however, of that year. two have or will leave the region in the frst quarter of

By year-end 2023, utilization hit 93%, represented by 2024 – the Shelf Drilling Perseverance (Vietnam) and Va- 30 committed rigs out of a marketed supply of 32 units. laris 247 (Australia).

8 OFFSHORE ENGINEER OEDIGITAL.COM