S&P Ratings: Offshore rig rates to remain low till-2021

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In a recent report, S&P said that after a peak floater utilization of than 80% in 2013, this has dropped to around 50% in 2017, “and we expect levels to remain essentially flat until 2020.”

“Although tenders and bidding activity for ultra-deepwater and deepwater floaters have recently picked up, we expect any new fixtures to essentially offset contracts that are rolling off over the next 12 months.”

“Meanwhile, utilization for jack-ups has increased from around 50% in 2015 to nearly 65%, given the lower breakeven costs and shorter payment periods associated with shallow water wells.

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