Page 10: of Offshore Engineer Magazine (Jan/Feb 2024)

9 11

MARKETS OFFSHORE DRILLING RIGS program for exploration and appraisal drilling (targeting

A Flat Near-Term Outlook in 2024 the Selene and Pensacola prospects), along with ONE-

North Sea jack-up utilization is showing strength

Dyas’ two-well development drilling program offshore the once again, however this is largely due to supply leaving

Netherlands, are close to being awarded. the market rather than a recovery in demand. The out-

Meanwhile, one campaign is now being pushed into look for the year ahead looks somewhat fat but there 2025 with the potential for two more to also be deferred.

is still time for new demand with a 2024 start date to

There is only one unit that has free and clear availability come to the fore. from late frst quarter 2024. However, the unit is allegedly

Drilling contractors, though keen to keep their harsh- a frontrunner for one of the outstanding 2024 require- environment units in the region, will undoubtedly be ments. Should extension declarations not materialize, or considering moving more rigs elsewhere if the contract no new work get secured, a further seven units could be- term and economics make sense to do so. come available but, for the most part, not until the second

However, if further rigs leave for multi-year cam- half of 2024.

paigns elsewhere there may not be enough capacity to

RigLogix records one tender for work in 2025 (yet-to- fulfl some of the longer-term CCS and P&A campaigns, be-awarded) and a total of 16 prospects that could equate which could come to fruition from 2025 onwards. to just shy of 12 rig years.

Subsequently, the tightened supply and demand bal-

Demand covers all types of activity: exploration (135 ance could result in a smaller pool of rigs to choose from days), appraisal (225 days), development drilling (2,147 and higher dayrates that could result in some of these days), CCS (140 days) and P&A (1,699 days). campaigns becoming uneconomical. 10 OFFSHORE ENGINEER OEDIGITAL.COM