Each quarter more signs of market stability and industry improvements are visible with an expectation to see this trend continue, the company said. Modern harsh environment market utilization has remained greater than 95% for the full year, while there is little incremental supply entering the market, and vintage units rolling off contract are likely scrapping candidates.
Additionally, Northern said, demand visibility is improving as the majority of near-term options are exercised combined with E&P companies entering direct negotiations with contractors. This is supportive of continued recovery and further rate increase in the harsh environment market that continues to show a strong preference for high specification and modern rigs like the West Mira and West Bollsta.
Brazil Energy Insight 
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