Drilling rig contractors have strong first quarter, report finds

In March, 33 rig contracts were confirmed, according to Evercore ISI’s latest “Offshore Rig Market Snapshot.”

This is up from 19 a year ago as the offshore drillers signed 135 contracts in 1Q or up 44% from 94 in 1Q 2018.

The jackup mix was unchanged at 57%, but Evercore said it was encouraged that average terms lengthened for both jackups and floaters to almost one year for jackups and more than five months for floaters. In 2018, average terms for jackups was six to seven months and less than five months for floaters.

Of the 33 contracts secured in March seven (four jackups, three floaters) were for at least a year as NOCs (Petrobras, PEMEX, and Saudi Aramco) appear to be stepping up while day rates are still near trough levels.

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