Rig market

OE ’s analysis of current rig market data is updated monthly using statistics provided by Rigzone.com

Utilization for the worldwide mobile offshore drilling fleet continues to track in the 74-75% range, about 7% below year ago levels. Global utilization for floating rigs (drillships and semisubs) has modestly declined over the last several months, which is in contrast to stabilization and some modest improvement in global jackup utilization during 1Q 2010.

Looking specifically at the rig market in Australia, utilization stands at around 85%, with 11 rigs contracted out of 13 in the region. However, utilization is expected to return to near 100% over the next several months.

The rig fleet in Australia is dominated by semisubs, and there is only one drillship working in Australian waters today. Two of the floaters in the region are capable of working in ultra-deepwater (>7000ft) and the rest of the fleet is comprised of midwater and deepwater units. Chevron, Shell and Woodside are the most active rig operators in the region today, accounting for about half of the rigs working in the region.

No marketable jackups are currently located in Australian waters.