Business Outlook 2019

BUSINESS OUTLOOK 2019

40

Semi-Submersible Rigs

35

30

25

20

15

Number of Rigs

10

5

0

Ireland

UK

Norway

Marketed Supply

Source: IHS Markit

Although utilisation rates are forecast to increase to a certain extent, with the gap between demand levels and marketed supply closing, drilling and wells services contractor companies still face significant challenges. Many of the proposed work programmes are relatively short-term and fragmented, and E&P companies therefore need to continue to work collectively to generate a sufficient scale of work scopes in order to improve the chances of these opportunities being progressed and to ensure that contractors are able to anchor resources in the basin to service this demand. The UKCS is also in competition with other basins, including north-west European countries such as Norway as well as eastern-European and Middle-Eastern countries, for supply chain resources. The basin needs to be seen as an attractive place for contractors to do business in, otherwise there is an increased risk that work in other basins will be prioritised.

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