Weekly Offshore Rig Review - Nov. 17, 2005

Worldwide offshore rig utilization held steady this week at just over 82%. A total of 3 idle rigs started new contracts this week, and 2 contracted rigs temporarily went off contract for modifications and inspections. The resultant net increase in rigs under contract was offset by the reactivation of one retired rig.

This week, we take a brief look at the demand side of the rig utilization equation and examine which operators are the curently the most active.

BP is the leading operator in terms of the total dollar amount being spent on offshore drilling rigs on a daily basis. The company is currently shelling out more $2.2 million per day for 15 rigs, an average day rate of just over $160,000 per rig. Of those, nine of the rigs are semisubs, three are drillships, and three are jackups.

For operators with at least three rigs under contract, Anadarko is paying the highest average day rate, with its three deepwater rigs earning over $213,000 per day. At the opposite end of the spectrum, Spinnaker is paying the lowest average day rate for its three shallow water rigs, which are earning an average of about $41,000 per day.

With 35 rigs currently working, Petroleos Mexicanos (PEMEX) has more competitive drilling units under contract than any other operator. But, at an average day rate of just over $51,000, PEMEX is getting the rigs for a day rate that is 23% below the overall average for jackups. Of course, the largest subtype of rigs being used by PEMEX is the 200'+ MC jackup, of which PEMEX has 12 under contract, and the day rates for those rigs are right on par.

PEMEX is also the worldwide leader in the number of jackups contracted, with its 27 rigs representing nearly 60% more jackups under contract than the next leading operator, Chevron, which has 17 jackups under contract. Petrobras is the leading operator of deepwater rigs with 7 drillships and 14 semisubs under contract, making it the leader in both rig types. Like PEMEX, Petrobras is head-and-shoulders ahead of the next operator on the list of leading deepwater operators, BP, which has 12 floaters (9 semisubs and 3 drillships) under contract.

For More Information on the Offshore Rig Fleet:
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