Offshore rig economics surged 11.1 percent in November

Ray Tyson

GlobalSantaFe’s worldwide Score, or worldwide summary of current offshore rig economics, for November rocketed 11.1 percent from the previous month, with the Gulf of Mexico leading all major producing regions with a huge 16.3 percent increase for the month.

The Score compares the profitability of current mobile offshore drilling rig day rates to the profitability of day rates at the 1980-81 peak of the offshore drilling cycle, when the index averaged 100 points.

In November, the worldwide Score averaged 52.9 vs. 47.7 in October, an 11.1 percent increase, according to the index compiled by contract driller GlobalSantaFe.

“The Score reflects improving market conditions,” the company concluded in its monthly report.

The Gulf of Mexico registered 53.6 in November compared to 46.1 for the previous month, a 16.3 percent increase. For the same periods, the North Sea registered 53 compared to 48, a 10.2 percent increase, while West Africa scored 53.4 vs. 50.1, a 6.7 percent increase. Southeast Asia scored 54 compared to 52.7, a 2.4 percent increase.

The use of deepwater semi-submersible drilling rigs weighed in with a hefty 48.2 points in November, a 15.4 percent increase over October’s 41.8 points on the Score. Jack-up rigs registered a 58 in November, a 5.6 percent increase over October’s 55 points.