Activity Survey 2014

ACTIVITY SURVEY 2014

Figure 14 illustrates that semi-submersible rig day-rates have almost doubled over the last three years and jack-up rig day-rates have increased by 60 per cent. Such cost increases have been a major deterrent to exploration activity, as many exploration wells are simply unaffordable at current prices.

It is also observed that rig contracts on the Norwegian Continental Shelf are typically two or three years longer in duration than those on the UKCS.

Figure 14: Daily Rig Rates Based on Reported Contract Awards for Mobile Units

500

Semi-Submersible Rigs

450

Jack-Up Rigs

400

350

300

250

200

150

Rig Rates (Thousand $/Day)

100

50

0

Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13

Source: North Sea Reporter

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