Activity Survey 2015

ACTIVITY SURVEY 2015

Mobile Drilling Rig Market The number of semi-submersible drilling rigs deployed in the UK fell to 18 rigs in January 2015. While the number of jack-up drilling rigs remained relatively stable over 2014 (19 jack-ups on average over the year), a fall is anticipated this year in response to reduced demand.

Figure 21: Number of Rigs on the UK Continental Shelf

25

20

15

Semi-Submersible Rigs Jack-Up Rigs

10

Number of Rigs

5

0

Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15

Source: North Sea Reporter

In response to market pressure, the daily rig rate for semi-submersibles started to decline in 2014, indicating a change in the market following three years of increasing daily rates. Whilst the daily rates for jack-up rigs appeared to increase in 2014, it is expected that the demand for jack-up rigs will reduce, driving down day rates this year.

Figure 22: Daily Rig Rates Based on Reported Contract Awards for Mobile Units

500

Semi-Submersible Rigs Jack-Up Rigs

450

400

350

300

250

200

150

Rig Rate (Thousand $/Day)

100

50

0

Jul-05

Jul-06

Jul-07

Jul-08

Jul-09

Jul-10

Jul-11

Jul-12

Jul-13

Jul-14

Jan-05

Jan-06

Jan-07

Jan-08

Jan-09

Jan-10

Jan-11

Jan-12

Jan-13

Jan-14

Jan-15

Source: North Sea Reporter

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