NEW YORK CITY – Contracting activity remains robust for jackups, with a total of 11 term contracts announced since June 1, according to Evercore ISI’s latest Offshore Rig Market Snapshot.
The primary driver of jackup demand remains the Middle East, which accounts for 6 out of 8 term jackup contracts announced in June and July, and a notable 23 out of 41 term contracts year-to-date. The other two jackup term contracts were signed in China and Australia.
Since June 1, jackup contracts have constituted 43% of all contracts announced, but they account for a substantial 86% of all rig-days awarded. This resulted in the year-to-date average contract reaching 800 days, implying an increase of 21% year-over-year.
Despite average contract terms for floaters continuing to remain flat year-over-year at 260 days, the recent uptick in floater contracts over the past three months has increased the floater contract count to 96, which is only 12% below the jackup contract count of 109.
“We note [that] the jackup-to-floater split has averaged approximately 63% over the past 10 years,” Evercore said.
