Global Marine says economics for offshore rigs improved slightly in June

Offshore drilling contractor Global Marine Inc., Houston, reports its worldwide Summary of Current Offshore Rig Economics for June increased by 0.6% over May, "in spite of a reduction in the Gulf of Mexico."


By the OGJ Online Staff

HOUSTON, July 16 -- Offshore drilling contractor Global Marine Inc., Houston, reports its worldwide Summary of Current Offshore Rig Economics (SCORE) for June increased by 0.6% over May, "in spite of a reduction in the Gulf of Mexico."

Global Marine Chairman, President and CEO Bob Rose said, "Softening jack up rates due to declining natural gas prices have taken a toll on the Gulf of Mexico SCORE. However, strong oil prices have continued to fuel improvement in 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 June was 51.7, up 73.5% over last year but down 6.3% from 5 years ago.

In the Gulf of Mexico, the June SCORE was 53.7, down 1.6% from May but up 52.5% from last year and up 14.3% from 5 years ago.

In the North Sea, June's SCORE was 46.6, up 4% over May and up 128% from a year ago, but down 28% from 5 years ago.

Off West Africa, June's SCORE was 58.1. That count is up 2.1% over May, up 61.5% from June 2000, and up 4.7% from June 1996.

Off Southeast Asia, June's count was 54, up 2.9% over last month, up 93.2% from last year, and up 5.5% from 5 years ago.

The June SCORE for jack up rigs was 62.4, down 2% from May, but still up 77.1% from last year and 10.4% from 5 years ago.

Semisubmersibles for the same month garnered a SCORE of 39.9, up 4.7% from last month and up 65.5% from 1 year ago, but down 25.8% from 5 years ago.

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