A sluggish offshore drilling market could deteriorate further next year due to weak demand and a flood of new vessels, according to Seadrill, the biggest driller by market cap. Day rates for the most advanced ultra-deepwater rigs peaked around $650,000 last year and are now down in a range of $375,000-$500,000.
via RIGZONE
Reliance Industries is receiving bids for an ultra-deepwater drillship for operation off India’s east coast. The drillship shall be capable of operating in water depths of up to 12,000 feet (3658m) and is likely to be hired for a four-year term. Transocean drillships DDKG-1 and DDKG-2 are currently contracted with Reliance at a day rate of $510,000. However, dayrates for drillships have softened this year and source said Petrobras has contracted DDKG-1 at $440,000 per day.
via Upstreamonline
Offshore owners supporting deepwater drilling may be looking at a tough few years ahead for clients, with ‘no new meaningful’ tenders in sight for this year. Tendering activity for drilling in deepwater (DW) and ultra-deepwater (UDW) has improved marginally in the past three months but actual signed contracts for rigs have been extremely few and far between.
via Tradewinds
After nice runs in 2013, the offshore drilling sector is facing declining utilization, a potential for declining rig rates across most rig classes including the higher spec ultra-deepwater (UDW) class, and finally an apparent slowdown in capital spending as the largest E&Ps quietly reassess programs. Offshore drillers finished the year as one of the worst performing sectors in the equity market.
via E&P
Offshore Bulletin 