Page 18: of Offshore Engineer Magazine (Sep/Oct 2024)

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MARKETS RIGS

Impending Shortage of Jackups within Ageing Asia Pacifc Fleet

While utilization for marketed jackup rigs is at a healthy 100% in the Asia Pacifc (APAC) region, it is an ageing feet that will ultimately be unable to fulfl operator age requirements.

By Paul Ezekiel, Senior Rig Expert, Westwood Global Energy Group estwood’s RigLogix records 39 marketed newbuild Vali will be leaving the area. It is worth noting jackups in APAC. This number excludes that APAC includes Australia, but excludes China, Japan two units under construction in Singa- and Korea. The latter two have a transient ?eet of rigs that pore, ?ve National Oil Company (NOC) operate there when needed, then generally demobilise back

W units operating in Vietnam, and two cold-stacked units in to Southeast Asia.

Labuan. The current age breakdown shows 16 units in the 1-10-year age bracket, 18 units aged 11-20 years, and three

Adapting to Prevent a Jack-up Shortage units aged 21-41 years. The two units operating in Austra- Here are four possible solutions to the impending lia are 18.6 and 25.8 years old respectively. problem of a shortage of jackups. Firstly, operators could

Operators generally stipulate rigs to be no more than amend the age requirements, to ease supply in the near 15 years old as part of their technical requirements. By term. Inspections would need to be more regular, and a 2030, only 20 units or less will be available that meet more stringent maintenance regime may need to be put in these criteria. This includes an additional Borr Drilling place to keep the rigs in good operational conditions. unit due for delivery at the end of this year, with the Secondly, operators taking equity in the rigs could help assumption that it does not leave the area. Expanding reduce contractor costs, and in turn pay lower dayrates outside of APAC, the average age of the global marketed since not subject to market ?uctuations and availability. jackup ?eet is 20 years. The operator-contractor relationship must become more

An interesting observation is that while ageing jackups of a partnership as opposed to the current customer/service are mobilising into the region, newer units have ended up provider. One key factor is the sharing of responsibilities in in Saudi Arabia and continue to leave for other regions. a manner be?tting of the term “partnership”.

Since the beginning of the year, Shelf Drilling Persever- The third possible solution is to build new units. At ance, Valaris 247, Emerald Driller, Topaz Driller, Adma- this point in time, newbuild costs still appear to be pro- rine 502, COSL Seeker and Baltic have entered the APAC hibitive. Contractors seem to concur that current dayrates region. The youngest of these “new entrants” is 11.4 years cannot support the cost. In its most recent presentation, and the oldest is 40.7 years. At the end of the year the Borr Drilling said: “Newbuild economics would require 18 OFFSHORE ENGINEER OEDIGITAL.COM