Page 17: of Offshore Engineer Magazine (Mar/Apr 2026)

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MARKETS RIGS

All charts © Esgian

Jack-up Suspensions Weigh on Near-Term Activity Jack-Up Market Faces Short-Term Pressure

After Iran was hit with missiles in late February and Iran Despite these setbacks, tendering processes have con- began responding with strikes in the UAE, Qatar and Sau- tinued for new jackup contracts in the region; albeit with di Arabia, a number of jack-ups were manned down and some delays in the deadlines for ongoing tenders. some drilling activity was halted due to safety concerns, Jack-up demand in the Middle East is expected to trend particularly in Qatar. downwards slightly over the next several months due to a

As of mid-April, a signifcant number of these rigs combination of the suspensions, jack-ups rolling off con- have returned to work. However, Saudi Aramco, the tracts, and delays to contract start dates. However, in con- largest operator in terms of jack-ups under contract, has trast with Aramco’s previous suspensions, jack-ups are not been issuing notices of temporary suspension, affecting expected to leave the Middle East in large numbers. jack-ups managed by ADES, Arabian Drilling and other Regional jack-up demand is currently projected to trend contractors. back upwards to previous levels after the near-term lull

Market sources suggest that around 20 jack-ups could as rigs return to work and operators work to reestablish be affected. The length of suspensions is undetermined; in normal operations. However, this return is predicated on previous rounds of suspensions some rigs have remained open hostilities in the region resolving over the next few suspended by Aramco for over a year but drilling contrac- months. Extended fghting and blockades would likely re- tors have stressed the temporary nature of the suspensions sult in a further decline in activity due to safety concerns this time. Regional rig demand in the near term is also and issues with selling and transporting produced hydro- expected to be curtailed by delays in the start of previously carbons. However in the longer term, high oil prices stem- fxed contracts. ming from the war could boost rig demand globally.

MARCH/APRIL 2026 OFFSHORE ENGINEER 17