Offshore rig markets again rise

Houston-based offshore drilling contractor Global Marine Inc. reports its worldwide Summary of Current Offshore Rig Economics (SCORE) for March increased 4.1% over February -- the 19th consecutive month of increases in the rating.


By the OGJ Online Staff

HOUSTON, Apr. 17 -- Houston-based offshore drilling contractor Global Marine Inc. reports its worldwide Summary of Current Offshore Rig Economics (SCORE) for March increased 4.1% over February -- the 19th consecutive month of increases in the rating.

Global Marine Chairman, President and CEO Bob Rose said, "While every major offshore rig market showed improvement in March, the real strength was in the international area. Here we are seeing the impact of higher spending by the major oil companies and accelerating project approvals by foreign governments."

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 March is 46.9, up 73.3% from a year ago and down 9.6% from 5 years ago.

In the Gulf of Mexico, the March rating rose 3.1% from February to 52.1. The gulf rating is up 71.6% from 1 year ago and up 23.3% from 5 years ago.

In the North Sea, the March SCORE was 37.6, up 3.2% over last month and up 92.8% over last year, but down 40.23% from 5 years ago.

Off West Africa, the rating was 51.2, up 7.6% over last month, up 47.1% over 1 year ago and up 1.2% from 5 years ago.

Off Southeast Asia, the March SCORE was 42, up 5.9% from February. The rating was up 48.8% from 1 year ago but down 17.2% from 5 years ago.

The March SCORE for jack up rigs was 58.6, up 3% over February, up 95.2% from 1 year ago, and up 10.9% from 5 years ago.

The semisubmersible rating was 34.2, up 7.5% over February, up 43.9% from 1 year ago, and up 32.6% from 5 years ago.

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