UK Oil Will Struggle for Semi-subs in 2021

UK oil companies will struggle to find semi-subs for work in 2021.

That’s according to Teresa Wilkie - an offshore rig market analyst for offshore rig brokerage, advisory and project development company Bassoe Offshore – who made the statement in a report posted on the company’s website last week.

“Exploration and production companies planning drilling campaigns in British waters next year could face a surprisingly small selection of semi-subs to choose from due to ever-shrinking ready supply in the segment,” Wilkie said in the report.

“The global coronavirus pandemic and oil price shock have added additional problems to the already distraught market and therefore drillers with rigs in the region – some of which are going through Chapter 11 proceedings –  have been making drastic decisions, which will have a lasting effect on the availability of such units in the future,” Wilkie added in the report.

The first of these decisions, according to the Bassoe Offshore representative, is the permanent removal of rigs from the active fleet, through sales for recycling or conversion. Wilkie outlined that another of these “drastic” decisions was to cold stack rigs rather than keeping them warm or hot-stacked. 

In the report, Wilkie highlighted that “too many rigs and not enough work” had been the norm in the British semi-sub segment since the 2014 oil price crash.

Bassoe Offshore describes itself as a leading offshore rig brokerage, advisory and project development company which focuses on offshore assets including drilling rigs, accommodation and service rigs, and floating production units. Established back in 1978, the company is based in Oslo, Norway, and has additional offices in London, UK, Houston, U.S., Dubai, UAE, and Rio de Janeiro, Brazil.

Wilkie, who has previously worked for companies including ODS-Petrodata, RigLogix and Westwood Global Energy, is based in Aberdeen, Scotland.

To contact the author, email andreas.exarheas@rigzone.com