Bruce Beaubouef, Managing Editor
Evercore ISI’s latest Offshore Oracle report indicates that there is “some softness” in jackup dayrates in the Southeast Asia market, while ultra-deepwater marketed rig utilization has declined below its pre-pandemic peak.
The report noted that jackup utilization in Southeast Asia declined to 92.8% in November, which previously had remained “resilient” at 97%+ over the past year. The three waves of Saudi Aramco’s rig releases were one of the main drivers as suspended jackups continue to spill into other regions, particularly in Southeast Asia, Evercore noted.
Additionally, relatively slower contracting activity in the Southeast Asia region (26 contracts year-to-date versus 45/42 contracts in FY23/FY22) is contributing to some pricing pressure as well. Saudi Aramco suspended High Island IV (Shelf Drilling), Arabia II (Borr Drilling), Sneferu (DPS/Egyptian Drilling), and High Island II (Shelf Drilling) in November.
Meanwhile, the report also noted that ultra-deepwater rig marketed utilization has fallen below its pre-pandemic peak. Contracting activity remains subdued, says Evercore, and the marketed utilization for UDW rigs declined to 81.0% in November, which is slightly below the pre-pandemic November 2019 high of 81.3%. This compares to the UDW marketed utilization of 87.8% in January 2023.
Evercore did note that the marketed utilization of seventh-generation drillships was 86.8% in November 2024 versus 91.5% in January 2023.
