Deepwater Oil Rigs May Fetch $600,000 a Day as Spending Expands

Deepwater Oil Rigs May Fetch 0,000 a Day as Spending Expands

(Bloomberg) —

The value to lease a deepwater drilling rig could climb to close report ranges if demand from oil corporations continues to extend within the coming years, based on the top of the world’s greatest offshore rig contractor.

Robert Eifler, chief government officer at Noble Corp., stated Friday in an interview that he’s planning for comparatively flat demand progress trade extensive for floating drilling rigs subsequent 12 months adopted by growth beginning in 2026 that might add about 10 rigs to the roughly 150 working all over the world. If it occurs, from that time ahead, “it’s doable” charges might climb to $600,000 a day, he stated.

“We expect dayrates will development upwards,” Eifler stated. “We’re signing one- to three-year contracts proper now at round $500,000 a day.”

International deepwater spending by oil producers is forecast to develop to a mean of $79 billion in 2026 and 2027, based on Noble, citing analysis from Rystad. That might be a 20% hike from the common annual quantity between 2023 and 2025. It’s a marked turnaround from the darkish days offshore drillers endured because the rise of shale made many deepwater tasks out of date, after which back-to-back oil busts crushed demand and money circulate.

At this time, Eifler sees an offshore drilling surroundings marked by steadiness and self-discipline during which explorers can get a rig if they need one. In earlier growth occasions, notably between 2010 and 2014, explorers raced to contract rigs for worry the availability of offshore vessels would run out.

“It could be one other few years and a constantly bettering market that might truly drive true provide shortage in our enterprise,” Eifler stated. “I don’t assume we’re getting ready to that proper now.”