Not new news but worthy of posting here

Offshore
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I wonder how this is effecting the other drilling companies? Anyone know of any stacked DP drillships or semis without contracts or renewed contracts at much lower dayrate than previous?

[B]Seadrill Turns Gloomy, Oil Firms Cut Spending[/B]

By Reuters May 28, 2014

Seadrill, the world’s biggest offshore rig firm by market capitalization, has turned gloomy about prospects for the global drilling market and expects falling charter rates as oil firms cut capital spending to protect margins.

Oil firms have for several months been cutting costs following a decade-long surge in investments.

But Seadrill, the crown jewel in shipping tycoon John Fredriksen’s business empire, had been more upbeat than peers due to its modern fleet and its specialization in high-demand segments, such as drilling in deep and ultra-deepwater.

“It was not expected that activity would come to a virtual halt while oil companies worked through their forward budgeting process,” Seadrill said in a statement on Wednesday.

It expects rates for new-generation vessels to fall to $425,000-$475,000 per day, well below their peak around $650,000 per day last year.

This may hit the company hard, despite the major contract Seadrill subsidiary North Atlantic Drilling signed with Russia’s Rosneft at the weekend, as it has five rigs without contracts from this year and seven new-builds without contracts in 2014 and 2015.

Until the situation improved, Seadrill said it would not order any more new rigs from yards on top of 19 rigs it already has on order.

Seadrill’s downbeat tone echoes that of fellow driller Maersk Drilling, a unit of Danish shipping empire A.P. Moller-Maersk, which said last week the global offshore drilling market’s dip could last a further 18-24 months. It had previously said it would last 12-18 months.

On the plus side, Seadrill said it expected its earnings before interest, taxes, depreciation and amortization to be better in the second quarter than in the first, as it reported January-March operating earnings above forecasts.

Its first-quarter net operating income came in at $890 million, above forecasts for $523 million in a Reuters poll of analysts, and also above the $552 million it posted in the same period a year ago.

Its shares were up 2.13 percent at 0818 GMT, beating a flat Oslo benchmark index.

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[QUOTE=c.captain;138297]I wonder how this is effecting the other drilling companies? Anyone know of any stacked DP drillships or semis without contracts or renewed contracts at much lower dayrate than previous?[/QUOTE]

The West Tellus is stacked in Las Palmas (delivered 3Q 2013). About 15 newbuild drillships being delivered in 2014 and 2015 with no contracts yet.

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[QUOTE=PDCMATE;138322]The West Tellus is stacked in Las Palmas (delivered 3Q 2013). About 15 newbuild drillships being delivered in 2014 and 2015 with no contracts yet.[/QUOTE]

Oooo…not good at all!

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[QUOTE=c.captain;138297]I wonder how this is effecting the other drilling companies? Anyone know of any stacked DP drillships or semis without contracts or renewed contracts at much lower dayrate than previous?[/QUOTE]

Yea, Transocean…one warm stack in GOM and a couple more to join it soon. Also one headed overseas at half day rate than it was making in GOM. Although Transocean has new ships under construction but I think all have contracts.

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Transocean’s Development Driller 1 is idle

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I had thought she was headed to Africa after BHP was done with her.

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Rigzone search results for semis

[ATTACH]3940[/ATTACH]

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[QUOTE=Traitor Yankee;138370]I had thought she was headed to Africa after BHP was done with her.[/QUOTE]

It was rumored but never set in stone. The Spirit, Luigs & Enterprise are nearing end of contract and might be joining her at anchor soon.

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Pretty sure 2 of Diamond’s new drill ships and one of Rowan’s don’t have contracts yet, either.

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looks like Seadrill got a break with this one, but the industry still is headed to being over capitalized

[B]Seadrill Breathes Sigh of Relief After Winning $1.1 Billion Charter Deal[/B]

By Rob Almeida On June 2, 2014

Seadrill’s West Jupiter, the second of eight 6th generation drilling rigs being built for Seadrill over the next two years has just signed a $1.1 billion, 5-year charter contract with Total Upstream Nigeria Ltd in support of Nigeria’s EGINA ultra-deepwater offshore project.

Two additional drilling rigs will be delivered to Seadrill this year from Samsung Heavy Industies including the West Saturn and West Carina and four in 2015, none of which yet have contracts attached to them.

A gCaptain source indicates ExxonMobil may be considering the West Saturn for use off Nigeria however.

The West Jupiter is expected to be delivered from Samsung in August 2014. The rig will be outfitted to work in up to 10,000 ft of water and is capable of water depths up to 12,000 ft and drilling depths up to 37,500 ft.

Per Wullf, Seadrill CEO commented, “We are very pleased to have been chosen by Total and its partners for this important project. This contract provides an opportunity to deepen our relationship with a key customer and strategically increase our rig fleet in Nigeria, adding the West Jupiter alongside the West Capella which has been operating in the Usan field Offshore Nigeria since 2008. Seadrill takes pride in continuing to build its presence in the Nigerian oil & gas industry”.

Worldwide, approximately 50 rigs will be completing their current charter contracts this year. Wells Fargo Securities estimates that half will sign follow-on contracts resulting in a glut of rigs on the global market.

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US Reserve printing money how could this situation not end up where it is now
The PSV business cant be far behind as they build them to match the rigs
add the shale gas coming on line and…

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Perhaps a Nigerian scammer! His prince brother will western union the money, except twice as much (seadrill keeps half), as long as they send back half.

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technical aspects eh? likely because the rig is a rusty antique POS which likely was broken down much more than not!

[B]Statoil Cancels Diamond Offshore Rig Contract 8 Months Early[/B]

By Reuters On June 4, 2014


Ocean Vanguard

OSLO, June 4 (Reuters) – Norway’s Statoil has cancelled a rig contract with Diamond Offshore Drilling Inc eight months earlier than expected, a company spokesperson said on Wednesday, confirming a report by energy news portal Offshore.no.

The Ocean Vanguard rig was expected to remain on contract for Statoil until next February at rate of $454,000 per day, Offshore.no said.

“We confirm that we have terminated the contract with Diamond Offshore. The termination is due to technical aspects of the rig,” Communication manager Oerjan Heradstveit said without providing further detail due to confidentiality issues.

The Ocean Vanguard was supposed to move to the U.K to drill a well in June before returning to Norway.

“The contract was valid until February 2015. Apart from this, we don’t want to comment any further,” Heradstveit said.

one good thing about all the newbuild drillships and rigs flooding the market is that the garbage rigs will suddenly become just that…

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[QUOTE=c.captain;138609]technical aspects eh? likely because the rig is a rusty antique POS which likely was broken down much more than not!

one good thing about all the newbuild drillships and rigs flooding the market is that the garbage rigs will suddenly become just that…[/QUOTE]

I agree on both statements. Just look at Transocean’s decision to weed out the old Jack-Up Fleet (Shelf Drilling) and more recently, the mid-water floaters in the North Sea, Caledonia Drilling. Many of these garbage rigs do need replacing.