Call them speculative, but the drilling companies and investors buying offshore rigs at today’s values could be dominating the industry soon.
We’ve commented on all the offshore rig deals that have happened this year, and there have been quite a few of them. Borr Drilling, Nothern Drilling, Shelf, Ensco, and most recently, Transocean have started acquiring offshore rigs at values which may never be seen again.
What do they know that nobody else does? If you’ve been following the market over the past few years, the answer should be nothing. Dayrates have fallen by at least 50% compared to their highs in 2013–2014. Values for modern (post 2007 built) rigs have declined to 50% or less of original construction cost.
Categories: Offshore Activity