GSF Worldwide SCORE Slips Further on Lower Day Rates
GlobalSantaFe reported that the company's worldwide SCORE, or Summary of Current Offshore Rig Economics, for October 2002 was down from the previous month's SCORE by 5.1 percent.
GlobalSantaFe President and CEO Sted Garber said, "Worldwide SCORE slipped further in October as most major offshore drilling regions struggled to balance rig supply and demand. As a result, day rates in many key markets have either plateaued or declined, as is the case for semisubmersibles operating in the North Sea. Today, contractors are happy to keep their rigs working and, in some cases, are willing to accept reduced day rates to do so."
GlobalSantaFe's SCORE compares the profitability of current mobile offshore drilling rig day rates to the profitability of day rates at the 1980-1981 peak of the offshore drilling cycle. In the 1980-1981 period, when SCORE averaged 100 percent, new contract day rates equaled the sum of daily cash operating costs plus approximately $700 per day per million dollars invested. In addition to a worldwide SCORE covering key types of competitive offshore drilling rigs in key drilling markets, a separate SCORE is calculated for certain types of rigs and certain regions to indicate the relative condition of rig markets. The release, which is made available for publication on the third Monday of each month, includes separate SCORE calculations for the U.S. Gulf of Mexico, the North Sea, West Africa and Southeast Asia. Rig types include jackup and semisubmersible rigs.