NEW YORK – Evercore ISI’s Oilfield Services, Equipment & Drilling group has released further analysis on its recently released report on rig activity. In its new report, the analyst firm found that offshore rig day rates are hitting new lows.
Evercore ISI pointed to its recent statistic noting that of the 27 newbuild floaters scheduled for delivery next year, just 12 are contracted. Of those, Evercore said, nine are Brazil-built, intended for Petrobras, and will undoubtedly be delayed.
“Thus, we expect contractors to continue delaying and canceling newbuilds throughout the down cycle, and more floater retirements beyond the industry’s 41 to-date are likely,” today’s report said.
The new analysis saw global floater utilization hitting a new low of 71.6% in October; in this vein, ultra-deepwater day rates reached new lows of $150,000/d for the Ensco 8505, $200,000/d for the Ensco 8506, and $206,000/d for the Noble Danny Adkins. Meanwhile, leading edge deepwater day rates fell to a new low of $140,000/d as contractors bid down deepwater rigs to perform P&A work.
Midwater utilization is at the lowest seen since the early 2000s and global jackup utilization at 69.2%. Regionally, jackup utilization is lowest in the Gulf of Mexico (12%), and highest in the Middle East (86%).
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