US Gulf of Mexico drillship fleet at 96% utilization

Drillship demand in the US Gulf of Mexico stood at 96% utilization as of mid-July compared with a 76% utilization for the same time a year ago, reports Westwood Global Energy Group.

US Gulf of Mexico drillship utlization
US Gulf of Mexico drillship utlization
RigLogix

Drillship demand in the US Gulf of Mexico stood at 96% utilization as of mid-July compared with a 76% utilization for the same time a year ago, reports Westwood Global Energy Group.

Westwood’s RigLogix said 24 units out of a 25-unit fleet are either working or committed to beginning contracts in the next few months. RigLogix tracks the offshore rig market.

The one stacked unit reportedly is being considered as a candidate to be cold stacked soon unless it secures work. If that rig were cold stacked, the utilization rate would become 100%.

Terry Childs, head of RigLogix, said the utilization rebound timing is slightly ahead of what RigLogix had forecast. “On the supply side, there has been a healthy amount of movement in and out of the region, and that will continue to be the case for the remainder of 2019,” Childs said.

US Gulf of Mexico drillship utlizationUS Gulf of Mexico drillship utlizationRigLogix

Four drillships are expected to depart for contracts in Central America and South America shortly. One of the four was overseas but came to a Brownsville, Tex., shipyard for some minor repairs.

One drillship now working offshore Mexico will return to the US gulf for a contract starting in September.

Currently, Shell Oil Co., Chevron Corp., and BP PLC have more than 50% of the contracted fleet under their control. Shell has six drillships under long-term contracts, while Chevron accounts for four units. BP has three units currently contracted with a fourth coming in January 2020.

More in Drilling Operations