Jackups continue their exodus from the U.S. Gulf

8/1/2007

By Jerry Greenberg

Rates for offshore service vessels were relatively unchanged in June. Operators of larger supply boats, however, recorded an average increase of more than $600 per day, with utilization up 1 percent. Rates for small supply vessels were unchanged while utilization fell 3 percent.

Small crewboats saw day rates dip $400 in June.

The big news is the continued loss of rigs. Three more rigs departed the U.S. Gulf of Mexico during the last two weeks of June. Two jackups and a semisubmersible left, reducing the total rig fleet to 131 from 134 earlier in the month. The semisubmersible, however, is expected to return to the U.S. Gulf later this year after a 110-day stay in Brazil. But the two jackups are expected to work outside the Gulf for several years.

It's the same old story, according to Cinnamon Odell, associate editor of the Gulf of Mexico Newsletter . Odell noted that three more jackups are slated to exit the Gulf in coming months, one mobilizing to the United Arab Emirates and two to Mexico. However, a semisubmersible will mobilize from the Mexican Gulf to the U.S. Gulf at the end of July.

The number of rigs under contract fell to 108 at the end of June from 110 a month earlier. A year ago, ODS-Petrodata, Houston, reported 150 rigs in the U.S. Gulf with 130 under contract.

Odell said that some operators were holding off on planned exploration programs for several reasons. Many are waiting to see how this year's hurricane season will shape up, she noted. However, Odell said there is a more tangible reason affecting drilling activity.

"Operators are drilling fewer wells because they don't have access to premium jackup rigs necessary to drill those particular prospects," she said. "Most of the jackups leaving the Gulf have been premium units so the operators are forced to wait for a contract slot to open on the remaining premium jackups."


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