Monday 13 March 2017

While delivery dates for the 107 jackups under construction get pushed back toward 2020, the path to achieving deliveries couldn’t be more obstructive.

Last week, COSCO Shipyard announced that it “sees no notable upturn in the global market any time soon” and will close three of its five offshore yards by 2020 to cut overcapacity. While prospects for building new jackups rigs over the medium term are virtually nonexistent, a more pressing problem for the Chinese yards is delivering the 65 jackups they already have.

But the problem isn’t just in China. Keppel FELS and PPL in Singapore are stuck with another 29 rigs which should (and, for the most part, could) have been delivered by now. Globally, there’s a total of 107 newbuild jackups waiting to enter a market which is already oversupplied by over 80 comparable rigs built post-2000 and by nearly 230 in the segment overall.

More - http://www.bassoe.no/defer-wait-repeat-newbuild-ja...