The future of offshore oil and gas exploration will be exploited with high-specification jackups and ultra deepwater (UDW) drillships capable of working in high-pressure, high-temperature (HPHT) environments, according to pure-play, high-specification offshore driller, Rowan Cos.
Upstream companies are demanding higher spec rigs as they drill ever more challenging wellbore designs, seek lower wellbore costs and strive for higher safety standards in the post-Macondo era.
According to Rowan, the features of ultra deepwater best-in-class drillships should include: dual, redundant, seven-ram blowout preventers; equipment designed for 12,000ft water depth; 1250-ton hook load; DP-3 compliance with retractable thrusters; five mud pumps with split mud systems; 4 MMlb riser-tensioning systems; third-load path; and accommodations for more than 200 people on board.
Currently, Rowan has four ultra deepwater drillships (all under contract), 19 high-spec jackups, eight premium jackups and three commodity jackups working in the Gulf of Mexico (GOM), the North Sea, Trinidad, West and North Africa, the Middle East and South East Asia.
The move to high-spec jackups comes at a time when the industry’s 1980s-era rigs are already past their 30-year life design, reports the company. Specifically, 289 jackups will be more than 40 years old by 2025. Meanwhile, out of 117 uncontracted jackups on order, about 20% have experienced delayed delivery requests by as much as six months. The delays are driven by speculators’ inability to sell the ordered rigs, other companies’ avoidance of large payments due upon delivery until contracts are in place, and the overall anticipation for better oil prices in 2016 to 2017. Currently, speculators represent 68 newbuild rigs orders and contract-established buyers represent 49 of the rig orders.
For now, of the 544 global jackup rig fleet, utilization stands at 76% with rigs working in the GOM (54 rigs), North Sea (52), Mediterranean (16), Indian Ocean (36), and offshore Mexico (58), Central and South America (16), West Africa (30), Australia (2), South East Asia (73) and the Middle East (156).
In the floater market, deliveries for uncontracted drillships and semisubmersible newbuilds have also been delayed. Out of 40 floaters without contracts, 33% have had their delivery dates delayed by more than six months. The delays are for the same reasons as the jackup delivery delays, and 16 newbuilds are sold to speculators while 21 are sold to companies with firm work contracts and the remaining three units are sold to national oil companies.
Currently, the global UDW floater fleet utilization is 84%, with rigs working in the GOM (54 rigs), North Sea (7), Mediterranean (5), Indian Ocean (4), and offshore Mexico (4), Central and South America (43), West Africa (27), Australia (2), South East Asia (6) and offshore eastern Canada (2).
As with nearly all offshore drillers, Rowan is cutting costs and improving efficiencies to improve its operating economics. For now, the company reports that 57% of its operating costs go toward labor and fringe benefits, while other major costs include repair and maintenance (15%), training, catering and crew transportation (11%), insurance (9%), rebillables (3%), rig moves (1%) and other costs such as rentals, medics, agents, satellite communications, and miscellaneous (4%).
Image: Rowan Gorilla VII / Rowan Cos.
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