LYNGBY, Denmark—Maersk Drilling achieved its highest North Sea jackup quarterly utilization in the second quarter since 2019, according to the company’s latest results statement.
In total, 686 out of the available 799 days were contracted, with three jackups starting new contracts in the North Sea outside of Norway.
However, the market day rates in those regions are lower than in Norway. On the other hand, there are limited tender opportunities for jackups in the Norwegian sector with a contractual start in 2022.
This is due to a forecast oversupply of jackups in Norway next year relative to demand. Also, the changes to Norway’s petroleum taxation laws continue to encourage investment in costlier floater projects rather than less cost-intensive jackup work.
Nevertheless, Maersk Drilling remains confident in the long-term prospects for the Norwegian market, with tender opportunities emerging for 2023.
The company’s international floating rig revenues rose to $158 million in second-quarter 2022, with 88% utilization of its fleet in this segment.
Apart from the cold-stacked semi Maersk Explorer, all its floaters are now contracted. The average day has risen to $247,000, mainly due to Maersk Voyager starting operations for Shell in Sao Tome & Principe.
Globally there has been an uptick in activity with average marketed utilization of 72% (first-quarter 2022: 62%), the highest since 2015. And at the end of the second quarter, the one-year forward contract coverage for the global floater market improved to 49%.
Factors include oil and gas prices that have stabilized at multi-year highs and significant floater capacity having been removed since the last cyclical downturn in 2020.
Utilization for seventh-generation drillships is now close to full capacity, Maersk Drilling added, driven by tight markets in the US Gulf of Mexico, Brazil, West Africa and southeast Asia. And forward contract coverage/marketed utilization are at the highest levels since 2015.
08.19.2022
