Monday 12 June 2017

Increasing number of North Sea drilling projects, oil company efficiency requirements, high barriers to entry, and shrinking fleet may lead to undersupply of premium rigs.

The North Sea, and particularly the Norwegian Continental Shelf, currently leads the market recovery scenario. As we’ve noted several times over the past few months, the midwater harsh environment segment will see more improvement than any other in the short and medium terms.

Out of approximately 1,000 offshore rigs, there are only 43 semisubs built to operate on the NCS (including seven under construction). A rebound in this segment isn’t going to save the offshore market in its entirety, but for rig owners who have (or can acquire) premium harsh environment semisubs, the NCS is an important component in today’s difficult quest for backlog.

More - http://www.bassoe.no/norwegian-offshore-market-fac...