During the past month, ten multi-year jackup contracts were signed, with Saudi oil giant Aramco continuing to drive the majority of the contracts, according to Evercore ISI’s latest Offshore Rig Market Snapshot.
PEMEX and Saudi Aramco secured five jackups each for a total of 15 and 25 years respectively during the past month.
Meanwhile, Saudi Aramco awarded 46 multi-year contracts year-to-date, which constitutes 70% of all Middle East and 45% of all global term jackup contracts.
The report shows that five idle units within Saudi Arabia are undergoing acceptance testing for new contracts starting before year-end, but another 30 units are mobilising to Saudi Arabia from several countries including China and the UAE.
“We expect Aramco to renew all 10 jackups rolling off contract over the next year, with ADES the likely acquirer of the Valaris 54 as it firms up its leading 37% market share, followed by ARO Drilling/Valaris at 21% and COSL and Shelf Drilling with 10% share each,” Evercore noted.
