Dayrates soar as rig demand hits a high

By Iain Esau

 30 March 2012 01:04 GMT

DEEP-water rig demand in sub-Saharan Africa is increasing steadily, driven by continued high oil prices combined with pre-salt and exploration successes in West Africa plus deep-water wildcatting successes off East Africa.

According to investment house Morgan Stanley, as of last week 33 floaters were available in West Africa, where the utilisation rate stood at 85%.

Terry Bono, head of marketing at rig giant Transocean, told analysts last month that in the ultra-deepwater market, limited availability in 2012 “is pushing rates up quickly” with short-term needs resulting in rig rates of about $600,000 per day.

Eight recent contracts were secured, with Tullow Oil and Chariot Oil & Gas paying top dollar dayrates of $596,000 and $560,000, respectively, to secure Ocean Rig’s drillship Olympia for work…

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