VESSELS, RIGS, & SURFACE SYSTEMS

David Paganie - Houston

Deepwater rig demand forecast to outpace supply

Good news for deepwater drillers and equipment suppliers – the market for your services is expected to remain strong. That, at least, is the thesis of a recent industry report by Pritchard Capital Partners. The report suggests that demand for floating rigs will outpace supply this year and in 2010, although it is anticipated that leading edge day rates for these rigs will slip about 10-15% to compensate for lower commodity prices.

It is estimated that 42 deepwater floaters will be available from the first quarter of this year through 2Q 2012. However, eight of these which are on order or under construction are not expected to be available due to the lack of financing. The report estimates that there will be three floaters available to the market in 2009 and five available in 2010. The rig supply will increase by 18 (10 uncontracted) in 2011 and by 8 in 2012. It is estimated that there are 28 outstanding long-term floating requirements from the first quarter of this year through 2Q 2012. In addition, the report forecasts demand for 22 more rigs for that time period: seven in 2009, eight in 2010, five in 2011, and two in 2012.

Vantage Drilling’s recent contracts underscore the continued demand for deepwater rigs. The first contract is five years with ONGC for the drillshipPlatinum Explorer. The rig is scheduled to mobilize from Daewoo Shipbuilding & Marine Engineering in Okpo, Korea, to India in 4Q 2010. Expected revenues over the contract term, excluding mobilization costs, are approximately $1.1 billion. The second contract is eight years with Petrobras for the drillship Titanium Explorer. The rig is scheduled to mobilize from Daewoo to the US Gulf of Mexico in 3Q 2011. Under the contract, Petrobras can relocate the rig on a worldwide basis. Expected revenues over the contact term, excluding mobilization costs, are approximately $1.6 billion.

Vessel deliveries

Seadrill has taken delivery of its new deepwater semisubmersible drilling rigWest Eminence from Samsung Shipyard in South Korea. The rig is expected to begin its six-year contract with Petrobras in the Santos basin in June.

SeaWolf Oilfield Services of Nigeria has taken delivery of its new jackupSeaWolf Oritsetimeyin (Hull 104) from UAE-based Maritime Industrial Services. The rig is the first built to the Friede & Goldman Super M2 design, and the first jackup drilling rig to be fabricated in the Middle East. The ABS-class certified rig is one of two vessels being built for SeaWolf Oilfield Services and the first of seven rigs currently being constructed at MIS’ yard.

Swiber Holdings has taken delivery of two offshore construction vessels for deployments in Asia. TheSwiber Supporter, a 100-metric ton (110-ton) crane dive-support work barge was delivered in January and is working in India. The other vessel, Swiber Concorde, a 200-metric ton (220-ton) crane pipelay barge, was delivered in February. At print, the barge was preparing for its first pipelay assignment in Southeast Asia.

Northern Offshore has taken delivery of its jackup rigEnergy Exerter from Fairstar. The rig is working with Aegean Energy under a 120-day contract in the Prinos North and Epsilon fields, offshore Greece.

New construction, refurbishment

Lamprell Energy has awarded Seajacks International a contract to build two special purpose four-legged self-propelled jackup units to facilitate well intervention and platform maintenance services in the southern North Sea. The units will be delivered and available for work in the first half of this year. Seajacks DP-2 units have been designed in compliance with UK, Dutch, and Danish sector regulations by GustoMSC.

Arabian Drilling Co. (ADC) has awarded Maritime Industrial Services Co. a $5-million letter of intent to refurbish the jackup rigArabdrill 08 for its contract with Khafji Joint Operations. The workscope includes equipment replacement and upgrade, piping modification, tank conversions, and accommodation refurbishment and extension. Work is expected to be completed in June.

ASRY Offshore Services (AOS) in Bahrain has completed its first major contract, the upgrading and repair of Hercules Offshore’s jackup drilling rigHercules 170. The work package included a number of upgrades to increase its performance and drilling capabilities.

Pemex tenders rigs

Pemex has awarded a tender for four jackups and one semisubmersible. The 350-ft (107-m) IC jackup for a 785-day contract from April 30 was awarded to Rowan for theRowan Gorilla IV. Three awards for 250-ft (76-m) IC jackups for 776, 1,085, and 1,162-day charters were awarded to SeaWolf Oilfield Services for the Delta Queen, and to Ensco International for the ENSCO 98 and ENSCO 90. Sole bidder Diamond Offshore with the semisubmersible Ocean Star was technically disqualified from the tender, which called for the provision of a floater capable of operating in water depths of 4,200 ft (1,280 m) for a 1,095-day charter starting in June.