Diamond Offshore has sold two drilling rigs as of this morning, its fleet status report shows. Terms are undsiclosed.
The rigs are the Ocean New Era and the Ocean Whittington. Both rigs are stacked in the US GOM and are classified by Diamond Offshore as retired.
The Ocean New Era is a 1974 built Korkut designed semisubmersible rated to drill in 1,500 ft. of water. The Ocean Whittington is a 1974 built Aker H-3 Enhanced class semisubmersible rated to drill in 1,500 ft. of water.
While terms were undisclosed, industry sources we’ve talked with this morning suspect these two rigs were likely sold for scrap - a trend that could accelerate in a low oil price environment next year. That said, we’ve also heard from industry sources recently that CNOOC has been doing due diligence on Diamond’s rigs. Specifically, our sources say that the Chinese operator was interested in buying as many as 14 of Diamond’s rigs in a multi-billion dollar deal. If this was the case, and CNOOC turns out to be the buyer of these two rigs, then today’s disclosure could suggest that the two parties were unable to agree on a larger transaction as only two rigs were announced as sold this morning.
While CNOOC could make sense as a buyer of older retired rigs, it does seem like a stretch they would buy these two (which need significant investment before they will be drilling-ready) and then pay to move them to Asia. Diamond Offshore has been known to try and put a drilling ban on old rigs it sells (a competition safeguard meaning the buyer can’t use them for drilling purposes in the future).
If the rigs weren’t scrapped, then it is possible they could be converted by the buyer to an alternative use like accommodation. Conversion would make sense as there would likely be a significant capital outlay for the buyer in order to get these rigs ready to work (surveys, upgrades, and refurbishment).
I also got an email from a broker listing the JASPER EXPLORER as available for sale but no price listed. Gotta be cheap in this market.
China could buy cheap rigs to explore and drill in disputed waters. In that case it wouldn’t matter if the rigs produced or not, the goal being to plant their flag.
and he intends to make his move for global domination right from within Port Flushoon (except that he needs to get Massa Gary’s permission first)
in the meantime, tell the deck pusher to get my bath-escape sub ready and also tell him to make sure this time Pussy Galore is in it instead of that airhead Tiffany Case…GOD, HOW C.CAPTAIN CANNOT ABIDE STOOPID WOMEN!
Seven more low-specification offshore drilling rigs are now being prepped for sale to a scrapyard today according to Transocean’s latest fleet update.
The rigs include the Sedco 710, Sovereign Explorer, Sedco 700, Sedco 601, J.W. McLean, GSF Arctic I, and Falcon 100.
Four other Transocean rigs are slated for scrapping as well including the Sedneth 701, Sedco 703, Sedco 709, and C. K. Rhein, Jr. The company notes “additional rigs may be identified as candidates for scrapping” as they continue to analyze the long-term competitiveness of their fleet.
While paring down their fleet, a few of their idle rigs have been awarded contracts including the Sedco Express and the GSF Development Driller I. The following is a breakdown of the latest contracts awarded:
>GSF Development Driller I – Awarded a two year contract in Angola at a dayrate of $382,000 ($279 million estimated backlog). The rig was previously idle.
>Jack Bates – Customer exercised a nine month option in Australia at a dayrate of $370,000 ($101 million estimated backlog). The rig’s prior dayrate was $420,000.
>Dhirubhai Deepwater KG2 – Awarded a five month contract extension in India at a dayrate of $395,000 ($59 million estimated backlog). The rig’s prior dayrate was $510,000.
>Sedco Express – Awarded a 45 day contract in Nigeria at a dayrate of $300,000 ($14 million estimated backlog). The rig was previously idle.
The Deepwater Pathfinder, Deepwater Expedition, GSF Explorer, and Discoverer Seven Seas are idle.
The total value of new contracts gained in the past month equals approximately $453 million.
All those 5th generation drillships sitting idle isn’t good though…OUCH!
I’ve steamed through the layup pile there by the loop a few times and it is pretty depressing. I did think the pathfinder was on with ENI until April though.
Good to hear the DD1 is going to work. Worked alongside them for a long time and the crew for the most part was great to work with.
[QUOTE=Traitor Yankee;150268]I’ve steamed through the layup pile there by the loop a few times and it is pretty depressing. I did think the pathfinder was on with ENI until April though.
Good to hear the DD1 is going to work. Worked alongside them for a long time and the crew for the most part was great to work with.[/QUOTE]
How much stuff is stacked over there? I’m coming back to the gulf on my next hitch. My boat has been in Hawaii for a while and am looking forward to being back in the bayou!
As of a few weeks ago, DD1, CR Luigs, Discover Deep Seas, Discover Inspiration, Deepwater Pathfinder, then Heerema's Balder though I imagine it's just a convenient place for it to hang out right now.
That’s all from memory, I have some photos I can check a little later
[QUOTE=Traitor Yankee;150283]As of a few weeks ago, DD1, CR Luigs, Discover Deep Seas, Discover Inspiration, Deepwater Pathfinder, then Heerema’s Balder though I imagine it’s just a convenient place for it to hang out right now.
That’s all from memory, I have some photos I can check a little later[/QUOTE]
Wow, that’s nuts. I never thought I’d see all that. That’s a lot of money just sitting there rotting away. They are still crewed with all the marine staff I imagine still?
Updated - - -
[QUOTE=c.captain;150285]You’re kidding…right?
if you’re not, then you must be related to that other famous Coogan we all knew and loved but was batshit insane!
[/QUOTE]
Its not all cracked up as is suppose to be. I don’t like sitting around at the dock, I’d rather be working but its nice to have a break over here. Lots of egos over here also.
I guess this bad news for people who work on in jobs related to the anchor handling industry, as most if not all the rigs that are getting scrapped are ones that don’t have DP and need anchor handlers to move.
This will thus probably lead to a drop in demand for AHTS and associated services as almost every rig being built are DP rigs or jackups that can do all their moving under their own power.
Drillships are parked south of the loop for other reasons, too. Last fall the current was too strong in areas for drilling, demobing/mobing, etc., to name a few.
