Half of the Norwegian oil rig fleet lack future contracts

NORTH SEANORTH SEA.Photo: Marit Hommedal / SCANPIX

Thirteen oil rigs have gone out of contract and are unemployed in July, while eleven more will have no contract come fall.

An increasing number of offshore workers are unemployed and in the fall there will probably be a historic Norwegian low level for the utilization of drilling rigs in Norway, writes offshore.no.
The large surplus of the rigs makes it so that some rigs will likely have to leave the market to create balance.

40 semi-rigs, 33 jack Up’s and 9 drillships will be taken out of the market worldwide.

On the Norwegian shelf there are no rigs to be taken down at the present time, but according to Sysla Offshore it will probably happen soon. In addition, more than 40 percent of the floating drilling rigs in Norway are over 20 years old, and several may be considered too old to reuse in future contracts.

Although half of Norwegian rigs are out of contract in the New Year, this is only because no new contracts have been signed at this time. Several companies have however signed contracts beginning between 2017 and 2020, including Statoil, Repsol and Aasta Hansteen.

 

Source: NTB scanpix / Norway Today

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