More TO junk to be scrapped

surprised to see a DP drillship in the pack tho even though it is an old one

[B]Transocean to Scrap Four More Floaters

By gCaptain On March 18, 2015

Transocean’s Deepwater Expedition, Transocean Legend, Transocean Rather, and GSF Arctic III are all heading to the scrapyard according to the company’s latest fleet status update. This list adds to the eleven rigs identified last December for scrapping.

The company also notes that four of their ultra-deepwater rigs have just been officially stacked including the Discoverer Spirit, GSF Jack Ryan, Deepwater Discovery, and Deepwater Pathfinder.

what is really ironic is how much the world has changed in just three years though. From a record dayrate to scrap! WOW! Whoo’da thunk it?

Transocean’s Deepwater Expedition Contract Bodes Well For Drilling Company Day Rates

Mar. 19, 2012

On March 15, 2012, Transocean (NYSE:RIG) announced that it has been awarded a two year contract beginning in December 2012 for the Deepwater Expedition. The drillship will be earning a day rate of $650,000 for the duration of this contract. As Transocean noted, this is the highest day rate awarded for any rig during the current industry upcycle.

This contract serves to reinforce my conviction that the world is facing a shortage of deepwater drilling rigs, and this will lead to climbing day rates for these rigs. (I have written before on this topic.)

This $650,000 day rate is substantially above the worldwide average for deepwater rigs and this gives further evidence that day rates are increasing worldwide. This chart from RigLogix shows the average dayrates for all floater rigs in the worldwide fleet as of March 17, 2012:

This chart is not showing the current market day rates, but the average day rate for all floater rigs currently under contract anywhere in the world. The Deepwater Expedition is a 1999-built drillship with a rated water depth of 8500 ft. As the table shows, the average day rate for this class of rig is $462,000. As stated, the Deepwater Expedition was awarded a dayrate of $650,000. As this is both well above the average day rate for similar rigs, as well as the highest day rate that has been awarded to any rig in the current upcycle, this shows that the market for these rigs is tightening. This tightening market is pushing up day rates industry wide.