Oil and gas drilling companies are finally seeing partial signs of recovery in the international offshore sector
Transocean Ltd, one of the world's largest suppliers of drillships, said last month that rates for new high-spec vessels in the North Sea are now approaching $300 a day. Drillers have been predicting a recovery for over a year. In addition to high oil prices, analysts and industry players say a wave of consolidation should help remove excess capacity from the market. Transocean last year acquired rival Songa Offshore SE and recently agreed to buy deepwater specialist Ocean Rig UDW for $2,7 billion.
London-based Ensco Plc, which took over Atwood Oceanics for $1,76 billion last year, this month closed a $2,38 billion deal to buy smaller rival Rowan Cos Plc and its stake in the joint venture, with Aramco of Saudi Arabia. Linkages between state-owned giants such as Aramco and Qatar Petroleum are expected to raise rates in the Middle East for drillers in the saltwater or shallow water rig market. While the Gulf of Mexico, West Africa and the US are already showing signs of recovery, Rystad Energy analyst Oddmund Fore said. , so … we are going to see a substantial increase in rig rates,” he added.
North American oil producers are facing restrictions in their onshore operations, particularly in the largest US oil field in the Permeiro Basin in West Texas and New Mexico. The US rig count, which reached 869 on Oct. 12, has been virtually flat since June. Recent offshore block auctions in Brazil, Mexico and major discoveries off Guyana point to future demand for drillships. In September, Transocean extended a crucial deal with state-owned Petrobras, while Noble has signed a new drilling contract in the Middle East for its new platform and expects increased demand in 2019.
