Westwood Rigs Round-Up: Harsh-Environment Semisubmersible Market Close to Sold Out

Marketed global offshore rig utilisation has remained at 87 percent for five consecutive months, indicating an overall levelling out of the supply and demand balance, according to Westwood Global Energy Group. While overall semisubmersible utilisation remains relatively flat, the harsh-environment segment tells a very different story, with a marketed utilisation of 97 percent. Of 38 marketed harsh-environment units worldwide, 37 are either actively contracted or have future work in place, leaving the market close to sold out.

 

The Overall Market

 

The global rig market has stabilised. Marketed utilisation has held at 87 percent. This has continued for five months. It indicates a levelling out. Supply and demand are balancing.

The jackup segment reflects this stability. It sits at 87 percent utilisation. This is unchanged from August. However, it is down on last year. Middle East conflict and lower demand contributed.

 

The Floating Rig Market

 

The floating market has edged up. It combines drillships and semisubmersibles. It rose one point from August. It now sits at 88 percent. This reflects modest improvement.

The two segments diverge, however. Drillships have gained the most. They rose to 93 percent utilisation. Semisubmersibles have fallen. They now sit at just 82 percent.

 

The Semisubmersible Divergence

 

Semisubmersible utilisation has declined. It has fallen for four consecutive months. It now sits at 82 percent. Most units are committed. But a gap has emerged.

This gap reflects differing demand. Drillships enjoy stronger deepwater demand. Semisubmersible activity is more varied. This spans regions and environments. This explains the divergence.

 

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The Harsh-Environment Segment

 

The harsh-environment segment stands apart. It tells a very different story. It tracks 38 marketed units. Of these, 37 are committed. This gives 97 percent utilisation.

The market is nearly sold out. Just one rig lacks a commitment. This is a single semisubmersible. Even that gap may soon close. Sources indicate it is edging toward work.

 

The Demand Drivers

 

Demand is expanding geographically. It extends beyond traditional areas. The UK and Norway remain essential. Norway accounts for 49 percent of demand. Yet other markets feature too.

The demand spans many countries. These include Australia and Canada. China and India also feature. Brazil and the Falklands are included. This reflects broadening geographic demand.

 

The Market Outlook

 

The outlook remains strong. A pipeline of tenders exists. This spans many countries. It covers campaigns worldwide. This supports continued demand.

Day rates remain strong as a result. This reflects high utilisation. Supply is limited. Premium assets command top rates. These reached up to 513,000 dollars per day this year.