Total hires Borr’s jack up rig in Netherland
Offshore driller Borr Drilling has won a contract for its C20051 jack-up drilling rig with Total. It has also secured a LoI for its Norve rig currently deployed in Gabon.
The company, owning 37 offshore rigs, on Thursday said the jack-up would work for Total in the Netherlands starting September. The rig’s previous contract with Perenco expired this month.
According to Bassoe Analytics, the two-month contract is with Total in the Netherlands starting on September 25, 2018, ending late in November. Total will have an option to extend the contract further for the 1982-built rig.
Also worth noting, Borr’s Norve jack-up which has been used for drilling in Gabon by BW, will this month go on a contract with Perenco for Gabon/Cameroon work until February.
Borr also said that it had secured a letter of intent for the deployment 2013-built Norve with an undisclosed client starting in July 2019 until April 2020.
Borr Drilling currently has 11 rigs either drilling or with a secured contract waiting to start drilling.
Modern Jack-up demand rising
In its quarterly report on Thursday, Borr noted that the jack-up rig utilization was on the rise, also noting an increased number of fixtures and preference for modern rigs.
The company currently has eleven modern-jack-ups under construction in Singapore at PPL Shipyard and Keppel, with delivery dates spread between September 2018 – and December 2020. It also has eleven premium jack-up rigs warm-stacked and available for work. Five of these have been built in 2018 and are warm-stacked in Singapore.
Bassoe Analytics data shows that the jack-up market is currently enjoying the best utilization, compared to drillships and semi-submersible rigs. Jack-ups utilization is at 68 percent, semis at 57 percent, and drillships at 52 percent.
Bassoe, a Norwegian offshore rig broker, on Thursday lifted its outlook for jack-up rig values on the back of the increased number of contracts.
“As a result of higher contracting activity and our outlook for increased demand and day rates, values for jack-ups have risen by 2% on average over the last 4-8 weeks. We see interest in higher spec, new (premium) jack-ups continuing to build and expect jack-up values to follow a steady upward trend over the next few months,” Bassoe said.
It’s worth noting that Borr Drilling alone sold 17 rigs jack-up drilling rigs for scrap during the second quarter for total proceeds of $35.2 million. More of this is expected to continue in the jack-up space.
“The supply of newbuild rigs entering the market will be more than offset by additional demand and scrapping of older rigs,” Bassoe said.