8,415 Active Recruiters     Over 2 Million Candidates Globally

Advanced
  1. Keep me logged in
  2. forgot password
cancel

Checkout Jobs Basket (0)

You can checkout a maximum of 150 jobs.

Signup Better for Candidates

  • Create a free virtual CV and let recruiters find you
  • Automatically have your profile matched to suitable Oil & Gas positions
  • Link to your profile using it as a free online CV
  • Store all your employment documents to your profile for easy sending
  • Always receive feedback on positions applied for

Signup Better for Recruiters

  • Suitable candidates automatically matched to your position
  • View candidate profiles for free
  • No more waiting for candidates to respond to job advertisements
  • Only ever pay when you match a candidate to a position
  • No more cold calling and sorting through out dated CVs

Maersk Drilling Expects Further Rise in Demand for Hi-Spec Jack-Ups

Published in Oil Industry News on Friday, 23 August 2019


Graphic for News Item: Maersk Drilling Expects Further Rise in Demand for Hi-Spec Jack-Ups

Maersk Drilling expects to see a further rise in demand for hi-spec jack-ups, with floater market expected to remain “challenged.”

The Danish drilling company which owns drillships, semi-subs and jack-ups -23 rigs in total – on Friday posted 2Q 2019 revenue of around $315 million, compared to $308 million in 2Q 2018.

The better chunk of the revenue was generated by jack-up units, $200 million, with around $114 million coming from the floaters.

Hot Tip

Looking for your next job? Register and build a detailed profile on Oil and Gas People so recruiters can find you. Apply for jobs with one click, store all of your employment documents in one place and receive job alerts as soon as suitable positions go live.

Its rig fleet utilization grew to 82 percent (from 73 percent), but the average dayrate fell to $185,000 from $208,000, due to the expiration of legacy contracts, and new contracts being signed at current market rates.

During the quarter, the company managed to grow revenue backlog to $2,3 billion, up from $2,2 billion in as at March 31, 2019.

Maersk Drilling signed eight rig contracts during the quarter and has also added two more rig deals in the third quarter so far.

While most of the contracts signed where for one to three wells, the company has during the third quarter also signed a three-year contract, plus two one-year options, for the Maersk Deliverer floater with Inpex Australia. The total contract value with Inpex is $300 million with a dayrate of around $266,200. The contract is expected to start in Q2 2020.

Jack-up demand set to increase

Maersk Drilling expects the demand for jack-up rigs, especially the high-end ones, to increase, while the pace of recovery in the floater market has been slower.

“In the broader jack-up market, the steady recovery seen over the past two years continued in Q2 2019. The number of contracted jack-up rigs continued to increase, and, with the marketed supply roughly unchanged, the global marketed utilization increased to 80% reaching its highest level since late 2015. Day rates also continued to trend higher,” the company said.

Hot Tip

Register on Oil and Gas People as a candidate and always have full control of your visibility. We want recruiters to be able to instantly find candidates that are available and actively looking for work. Just confirm your status every 60 days to stay visible and at the top of recruiters searches.

There are different demand and supply dynamics across the various jack-up rig categories, Maersk Drilling says: “In the segment for harsh environment jack-up rigs capable of working in the most challenging environments in the North Sea, the marketed utilization is now above 90%. Particularly, the niche segment of the most advanced and capable jack-up rigs (CJ70 design), in which Maersk Drilling has a market share of more than 50%, is characterized by full utilization for the rest of 2019. ”

Based on the current backlog as well as ongoing tenders and bilateral negotiations, the trend of increasing demand for jack-up rigs is expected to continue, the driller says.

“In the North Sea, there are several opportunities – both short term and long term durations – for harsh environment jack-up rigs with commencement late 2019 and first half of 2020.”

Slow recovery pace for floaters

The pace of recovery in the floater market has been slower over the past two years than what has been seen in the jack-up market, the company said.

Maersk Drilling said, however, that during Q2 2019 the number of contracted floaters increased, driving marketed utilization to 80%, its highest level since late 2015.

Hot Tip

Other job sites dump your CV into a database and let recruiters shift through thousands of candidates to find out who is available. With Oil and Gas People you just update your profile every 60 days to stay visible and at the top of recruiter searches.

“Day rates are still at challenging levels but have moved upward over the past year. Despite the upward trend in activity and day rates, the forward coverage remains relatively low with many rigs rolling off contract and becoming available, and the floater market is expected to remain challenged.”

“With stronger free cash flow generation among oil companies, and more financially robust projects supporting increased sanctioning of new projects, demand for offshore rigs is expected to continue increasing. Therefore, Maersk Drilling continues to expect improvements in utilization and day rates longer term. However, the timing and magnitude of the recovery, particularly in the floater segment, remains uncertain,” Maersk Drilling said.





Oil and Gas News Archive


Latest Oil & Gas News







Featured Companies

  • View All JobsOMPA

    Offshore Marine People & Academy (OMPA) is a global provider of personnel and training to the renewables, oil & gas, telecommunications and marine industries.

    With over 15 years' industry experience, we work with candidates to match them to the right roles and equip them with the skills and knowledge needed to succeed. Our job is to exceed your expectations.

    Visit us online: offshorempa.com

  • View All JobsChronos Oil and Gas

    Chronos Oil and Gas is one of the fastest growing and best placed recruitment agencies in the sector.

    With over 300,000 candidates on our database and an international team of specialist recruiters we work with clients to staff major projects around the world.

    Register your CV at www.chronosoilandgas.com

  • View All JobsNatural Resources

    Natural Resources is a UK based recruitment company providing personnel of all disciplines and nationalities worldwide.

    We represent clients and candidates at all levels who operate globally within oil & gas, renewables, nuclear, power, mining, marine, drilling, construction and petrochemicals. Our client base includes energy and construction.

    Visit Natural Resources at natural-resources.com