A massive response — as many as 27 jackup rigs against the recent ONGC tender — is a big sign that rig hire rates will now fall below ONGC’s own reserve price. It is learned that as many as 10 Indian and foreign companies have offered these rigs in the tender. Clearly, everyone is bidding aggressively.
The rigs rates are pegged keeping only variable costs in mind, as the alternative will be cold or warm stacking them or shelving them entirely. Find out more on the baseline pricing that the bidders had taken into account while bidding for the ONGC RIL tenders contracts .
Latest update on the market: The offshore rig market continues to be turmoil and the free fall in hire rates seem to continuing as of now. What is more, a total of 154 rigs are under construction. Jackups make up the vast majority of this set, with 100 units currently under construction. The Jackup number is more than double the combined number of drillships, semis, and tenders currently being built, of which there are 30, 16, and eight under construction, respectively.
Out of all of these rigs, only 25 were ordered with contracts in hand or by operators themselves. Of the remaining 129 speculative units, so far none have locked in charters since construction began.
The situation is so bad that some contractors have opted to cancel the construction contracts with shipyards on which work has already started or, in some cases, nearly finished, primarily ultra-deepwater floaters.
The website carries here a worldwide new rig construction database as of June 2017, providing the following details:
Rig name
Rig type
Water depth
Construction status
Delivery date
Build yard
Build country
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