The Norwegian continental shelf (NCS) is being revitalized, with a number of recent discoveries and production replacements occurring. The number of exploration wells has grown steadily after a dip in 2005, and a large number of subsea wells in production require mobile offshore drilling units (MODUs) for production drilling. The NCS rig market is characterized by an aging rig fleet, where two-thirds of MODUs are 25 years or older. In addition, the entry barriers are perceived as high due to a strict regulatory regime compared to other regions; harsh environmental conditions; high cost level; constrained rig capacity; and a lack of fit-for-purpose rigs for mid-water production drilling and completion, as the market is dominated by deep-water rigs optimized for exploration drilling.
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