Wednesday 25 October 2023

As offshore drilling rig utilisation increases and availability continues to tighten, Westwood has recorded a marked lengthening of new contract award durations, as well as for new tender opportunities.

Over the last decade, new rig deal durations peaked in 2013 for jackups and in 2014 for floating rigs (semisubmersibles and drillships). Analysis shows that the length of such deals dwindled during the prolonged downturn and eventually reached the trough in 2018 for floaters and 2019 for jackups but has picked up steam again since the global rig market recovery got under way in 2021.

On average, awarded jackup contract durations have increased 36% compared with 2021, while drillships have increased 41% and semisubs a whopping 117%.

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