More Offshore Drilling Firms Likely to Face Similar Situation to Ocean Rig



More Offshore Drilling Firms Likely to Face Similar Situation to Ocean Rig
Many offshore drilling companies are facing a similar situation to Ocean Rig, which filed for Chapter 15 bankruptcy protection in the US Tuesday, and it is likely that more will follow suit.

Many offshore drilling companies are facing a similar situation to Ocean Rig, which filed for Chapter 15 bankruptcy protection in the US Tuesday, and it is likely that more will follow suit, maritime consultancy firm VesselsValue Senior Analyst William Bennett said.

“So far the difficult conditions have seen Hercules offshore go bankrupt and also a number of scares, in particular involving John Fredriksen’s Seadrill,” Bennett said in a statement sent to Rigzone.

Ocean Rig currently owns a fleet of 11 rigs, which consists of nine modern drillships built at Samsung and two semi-submersible drill rigs built between 2002 and 2001, VesselsValue revealed. The live fleet is said to be worth $1.64 billion.

Ocean Rig also has three drillships still on order at Samsung, which are said to be worth a total of $1.24 billion.

“It is quite possible that these drillships are delayed as has been the case for newbuildings across the offshore industry,” Bennett said.

Ocean Rig was said to be suffering from heavy debt and unprecedentedly weak market conditions. In the last 12 months, the value of the company’s fleet has fallen by 40 percent, according to VesselsValue.

Seadrill, battling with $14 billion in debt and liabilities, revealed Feb. 28 that it may have to file for Chapter 11 bankruptcy protection if it fails to reach a restructuring agreement with its lenders.

The total value of Seadrill’s fleet has dropped by more than $3 billion since January 2014, VesselsValue said.



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