The deepwater rig market will stay relatively slow in terms of day rates for the remainder of this year and into 2015, but will see a resurgence in the mid- and long-term, according to Maersk Drilling’s CEO Claus Hemmingsen.
Speaking recently on the sidelines of A.P. Moller-Maersk’s annual capital markets day, Hemmingsen told Reuters, “If you go back one and a half years ago, you would say [the day rates would reach] $500,000 to $600,000, a few above that, but that would be in Angola. Currently, we’re probably talking about $400,000 to $500,000 for day rates. So we have seen, and will see, a decline in day rates for deepwater [rigs].”
He added that the company has six rigs out of eight coming out of shipyards with “very strong” contracts. “The two rigs [without contracts] are for the deepwater market and when you see a market that is going in the wrong direction, there is of course concern. We have just managed to land a contract extension for one deepwater rig in Angola.”
Recommended Reading
Dividends Declared in the Week of Aug. 19
2024-08-23 - As second-quarter earnings wrap up, here is a selection of dividends declared in the energy industry.
Gulfport Energy to Offer $500MM Senior Notes Due 2029
2024-09-03 - Gulfport Energy Corp. also commenced a tender offer to purchase for cash its 8.0% senior notes due 2026.
Pembina Completes Partial Redemption of Series 19 Notes
2024-07-08 - The redemption is part of Pembina Pipeline’s $300 million (US$220.04 million) aggregate principal amount of senior unsecured medium-term series 19 notes due in 2026.
Offshore Guyana: ‘The Place to Spend Money’
2024-07-09 - Exxon Mobil, Hess and CNOOC are prepared to pump as much as $105 billion into the vast potential of the Stabroek Block.
Bechtel Awarded $4.3B Contract for NextDecade’s Rio Grande Train 4
2024-08-06 - NextDecade’s Rio Grande LNG Train 4 agreed to pay Bechtel approximately $4.3 billion for the work under an engineering, procurement and construction contract.