SCORE offshore rig indicator falls from Gulf of Mexico weakness

Offshore drilling contractor Global Marine Inc., Houston, reports its worldwide Summary of Current Offshore Rig Economics for July fell by 0.3% from June. The Gulf of Mexico rating lowered the count, though the international market showed strength.

Aug 20th, 2001

By the OGJ Online Staff

HOUSTON, Aug. 20 -- Offshore drilling contractor Global Marine Inc., Houston, reports its worldwide Summary of Current Offshore Rig Economics (SCORE) for July fell by 0.3% from June.

Global Marine chairman, president and CEO Bob Rose said, "The Gulf of Mexico SCORE edged down again this month as the slowdown in operator drilling activity forced contractors to further reduce day rates. Countering this, however, SCORE continues to reflect much tighter rig markets in international sectors, where oil companies have had to bid up day rates in order to attract equipment."

SCORE compares the profitability of current mobile offshore drilling rig rates with the profitability of rates at the 1980-81 offshore drilling cycle peak, when speculative rig construction was common. Global Marine's SCORE then averaged 100%, and new contract day rates equaled the sum of daily cash operating costs plus $700/day/$1 million invested. SCORE reflects current rig day rates as a percentage of the estimated rate required to justify building rigs on speculation.

The worldwide SCORE for July is 51.6, up 65.4% from 1 year ago but down 8.9% from 5 years ago.

In the Gulf of Mexico, the July rating was 52.6, down 2% from June but up 47% from 1 year ago and up 5.7% from 5 years ago.

In the North Sea, the July rating was 46.5, down 0.4% from June. The rating is up 99.1% from a year ago but down 28.4% from 5 years ago.

Off West Africa, the July SCORE was 60, up 3.2% from June, up 68.8% from July 2000, and up 4.5% from July 1996.

Off Southeast Asia, the rating was 57.8, up 7% from June, up 78.2% from 1 year ago, and up 11.3% from 5 years ago.

The July SCORE for jack up rigs was 61.4, down 1.6% from June but up 57.5% from 1 year ago and up 6.4% from 5 years ago.

The July rating for semisubmersible rigs was 41.2, up 3.2% from June and up 85.3% from a year ago, but down 25.6% from 5 years ago.

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