Report: Offshore rig market suffered ‘deceleration’ in 2024 due to equipment and FPSO delays; political uncertainty

Bruce Beaubouef, Managing Editor  

The past year of 2024 was a more challenging year for the broader offshore rig market compared to the recent past, according to analysis in Evercore ISI’s latest Offshore Rig Market Snapshot.

After a “robust” year in 2022, with significant day rate increases and lengthening contract terms, the overhang from the deceleration in the offshore market in late 2023 slipped into 2024, says Evercore.

“Of course, equipment and FPSO delays were partly to blame, but slower demand growth in some regions, strong non-OPEC supply, and uncertainties stemming from the US election created some blurriness, pushing projects to the right,” the firm wrote. 

However, incremental floater demand is anticipated to emerge in late 2025 and 2026, says Evercore, particularly in Latin America and Africa, “which should remove some burden off the offshore drillers’ shoulders as whitespace concerns are subdued.” 

Year-to-date, 110 floater contracts were awarded in 2024, with an average floater rig day of 284. While the floater/jackup split for contract count largely remained the same compared to 2023, contract count and average rig days for floaters decreased (29%) and (11%) year-over-year, respectively.

The jackup market also followed suit, the firm said. The number of contracts for jackups decreased by (27%) year-over-year, while the average number of rig days decreased by a larger magnitude of (30%), Evercore wrote.

The firm did note that since November 1, 2024, there have been a few notable contract awards. These include:

• Noble was awarded a 130-day contract extension for the Ocean Endeavor in the UK with Shell and a 183-day contract extension for Noble Innovator in the UK with BP. TAQA exercised a one-year option for Noble Patriot in the UK, and TotalEnergies exercised an option (141 days) for Noble Gerry de Souza in Nigeria.
• For Borr Drilling, the Mexican corporate remnants of Fieldwood Energy extended their contract for the Hild rig for about four months in Mexico. This contract comes with an option, which could keep the rig working through 3Q26 if the option is exercised. Borr was awarded a contract extension for the Mist rig in Thailand (Valeura) for 12 months until August 2026. A second one-well option was exercised for the Prospector 1 (62 days), which will keep the rig working until July 2025.