Deepwater rig spot market emerging with increased subletting

The deepwater drilling rig market is emerging as a spot market because producers are becoming comfortable with the idea of subletting rig time to other operators, said Oscar Hernández, an analyst for ODS-Petrodata Group."Subletting has grown from comprising 2-4% of the US Gulf of Mexico activity in 1996-97 to 15% or more of the market," Hernández told OGJ Online during the Offshore Technology Conference earlier this month.Oil and gas companies built a backlog of deepwater leases to explore during 1996-98, and they have committed to long-term contracts on deepwater rigs. Producers are willing to sublet their time on deepwater rigs when they are not using the rigs yet or when ...

Why Register?

Non-subscribers can only view whitepapers by providing name, home and email address, phone number and other information and comment on/rate articles.

Why Subscribe?

Oil & Gas Journal subscribers with login credentials can access these premium features of OGJ Online:

  • Current Issue – an html version of the current week's issue of Oil & Gas Journal.
  • Past Issues – An Electronic OGJ Archive. A keyword-searchable archive of all issues of Oil & Gas Journal dating back to 1990; also searchable by issue date.
  • Market Journal – a weekly round-up of the oil and gas markets, with observations from leading analysts.
  • Editor's Perspective – a short article of insight and opinion by the Editor of Oil & Gas Journal.
  • OGJ Industry Stats – quick access to current industry statistics from Oil & Gas Journal.
  • OGJ Survey Downloads - quick access to exclusive reports from Oil & Gas Journal.


Subscriber Help or Subscribe

Oil & Gas Journal Subscribers: Have your subscription number (from the mailing label on the cover of your Oil & Gas Journal) and e-mail address ready to set up your online account through Customer Service Assistant.

If you're not an Oil & Gas Journal subscriber, start a subscription and gain access to the subscriber areas of OGJ Online now.

Stay Connected