Gulf of Mexico rig market weakness again drags down SCORE indicator

Offshore drilling contractor Global Marine Inc., Houston, reports its worldwide Summary of Current Offshore Rig Economics for August fell by 3.2% from July.

By the OGJ Online Staff

HOUSTON, Sept. 18 -- Offshore drilling contractor Global Marine Inc., Houston, reports its worldwide Summary of Current Offshore Rig Economics (SCORE) for August fell by 3.2% from July.

Global Marine chairman, president and CEO Bob Rose said, "This month's SCORE report, which reflects August activity levels, shows the worldwide SCORE down slightly as softening Gulf of Mexico day rates overshadowed the continued strength of international offshore rig markets."

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 August is 49.9, up 50.3% from 1 year ago but down 14.1% from 5 years ago.

In the Gulf of Mexico, the August rating was 46.5, down 11.6% from July. That is still up 21.3% from a year ago, but down 7.7% from 5 years ago.

In the North Sea, the August SCORE was 48.7, up 4.9% from July and up 98% from a year ago, but down 28.3% from 5 years ago.

Off West Africa, the August rating was 60.1, up 0.3% from July, up 54.8% from a year ago, and up 4.2% from 5 years ago.

Off Southeast Asia, the SCORE was 57.6, down 0.3% from July, but up 77% from a year ago and up 9.3% from 5 years ago.

The August rating for jack up rigs worldwide was 60.6, down 1.2% from July but up 46.3% from a year ago and up 4.4% from 5 years ago.

The August SCORE for semisubmersible rigs was 39.7, down 3.7% from July. That is still up 61.2% from 1 year ago, but down 31.7% from 5 years ago.

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