Offshore rig economics rating jumps sharply

Houston-based offshore drilling contractor Global Marine Inc. reports its worldwide Summary of Current Offshore Rig Economics (SCORE) for January increased by 13.1% over December�one of the largest month-on-month increases ever reported.


By the OGJ Online Staff


HOUSTON, Feb. 20
�Houston-based offshore drilling contractor Global Marine Inc. reports its worldwide Summary of Current Offshore Rig Economics (SCORE) for January increased by 13.1% over December�one of the largest month-on-month increases ever reported.

Global Marine Chairman, President and CEO, Bob Rose said, "The majors are back in the game. After being on the sidelines for more than 2 years, the major oil companies may make 2001 the year of the drillbit."

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.

January's SCORE is 42.1, up 64.8% from a year ago and down 13.9% from 5 years ago.

In the Gulf of Mexico, January's SCORE increased to 46.7, up 10.8% from December and up 65.9% from a year ago. The gulf rating is up 11.4% from 5 years ago.

In the North Sea, the January SCORE was 34.2, up 22.2% over last month and up 76% over the same month last year, but down 40.7% from 5 years ago.

Off West Africa, the SCORE rose 10.8% to 44.7, a rating that is up 36.6% from January a year ago and up 6.5% from January 5 years ago.

Off South East Asia, the SCORE rose 9.6% to a rating of 42 in January. The number is up 52.4% from January 2000 and down 17.2% from January 5 years ago.

The January SCORE for jack ups was 53.6, up 17.6% over December's number. The rating was up 92% from January 2000 and up 11% from 5 years ago.

The SCORE for semisubmersibles was 29.2, up 4.7% over December and up 27.2% over January 2000, but down 40.9% over 5 years ago.

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