Worldwide rig economics take 4.5 percent dive in April

Ray Tyson

Petroleum News Houston correspondent

GlobalSantaFe’s worldwide Score, or Summary of Current Offshore Rig Economics, for April was down an overall 4.5 percent from the previous month, the Houston-based drilling contractor reported May 17.

The Score compares the profitability of all current mobile offshore drilling rig day rates to the profitability of day rates at the 1980-1981 peak of the offshore drilling cycle.

In the 1980-1981 period, when Score averaged 100 percent, new contract day rates equaled the sum of daily cash operating costs plus about $700 per day per million dollars invested.

The Gulf of Mexico scored 37.4 for April, down 2.8 percent from the previous month’s 38.4 but up 30.1 percent compared to the same period last year. The April Score also was up 51.2 percent versus five years ago.

The North Sea scored 40.3 for April, down 1.4 percent from the prior month’s 39.7 but up 6 percent from a year earlier. April’s Score was up 47.4 percent compared to five years ago.

West Africa registered a 48.5 Score in April, a decrease of 9.3 percent from March’s 53.5 and a decrease of 1.7 percent from April of last year. April’s Score also was down 1 percent versus the same month last year.

Southeast Asia scored 53.8 in the April survey, down 7.9 percent from March’s 58.4 but up 1.8 percent from the year-ago period. The April Score was up 45.9 percent compared to five years earlier.

As for the market performance of drilling rigs in April, jack-ups scored 52, down 3.8 percent from March but up 20.3 percent for the same period a year earlier, and up 79.3 percent versus five years ago. Semi-submersibles scored 32.3, down 6.8 percent from March and down 1.2 percent from a year earlier, but up 10.2 percent compared to five years ago.