Jackup exodus could leave Gulf in dire straits

摘要

With the announcement that five Rowan jackups will relocate to Saudi Arabia (see Middle East/ Mediterranean Market News), rig departures from the Gulf have once again become a hot topic. Despite the tight supply/demand market that currently exists, the movement of rigs to other areas has not ended. Currently, there are two more jackups that will definitely leave the Gulf this year, with another likely to be announced shortly. In addition, an outstanding bid could take another two from the area early next year. If the latter materializes, it would make a total of 10 jackups scheduled to leave the Gulf, nine of which would depart over a three or four month period starting in November. The remaining unit will have already left in September. Finally, other areas of the world still have inquiries and/or outstanding tenders pending as well, meaning the exodus could continue into 2006. USA GULF OF MEXICO: Diamond Offshore received an LOI for semi Ocean Endeavor. The contract, believed to be with Devon Energy, will begin around February 2007 and will ran for two years. However, Devon has until the end of 2005 to convert the contract to a four-year deal. A final contract is expected to be signed shortly. Revenues from the two-year term are estimated at USD 198 million, rising to around USD 355 million if the term is changed to four years. The rig is currently at the Keppel PELS yard in Singapore undergoing a USD 250 million upgrade, including a water depth increase to 8,000 fsw. Work is scheduled to be completed in early December 2006, with the rig arriving in the Gulf in late January 2007.