This is a volatile industry with both good and bad surprises ahead of it, but I believe deepwater energy has tailwinds behind it. Just need oil prices to cooperate. Buckle up!
Thanks, Nick. I think Hercules is a good candidate for the Var Energi tender although its history as an exploration-focused rig does not help. I think it will eventually find work.
Is NOL/Mira tangentially affected by this news? I recall they seem to focus on West African employment opportunities for now, but the option to return to the NCS isn‘t without value either…
Good question, Alexandros. All else equal, the addition of one more NCS-eligible rig is negative for Mira’s competitiveness in Norway. However, recent news of the Vår Energi multiyear tender could create an opportunity in Norway if they drop the COSL semisub. I believe Mira is most likely to find its home in West Africa, though too soon to rule out a return to Norway because of the new Vår opportunity. COSL could be the loser when all is said and done but we'll see. I used to think GreatWhite could end up in Namibia but Mira's position in the region makes that less likely and in my opinion, indicates Mira is most likely to stay where she is and its most efficient from a mobilization spend perspective
John, I appreciate you continuing to read. I admit it's a bit surprising to see a Kermit the Frog avatar commenting on offshore drilling rig posts but I like it!!
Smart move by Noble offloading the jackups to Borr. The jackup market is well-supplied and getting new rigs to market is relatively cheap compared to deepwater, so there's limited pricing power long-term. Using that $210mm in cash to fund the GreatWhite upgrade is essentially swapping a commoditized asset for access to one of the tightest floater markets in the world.
Curious to see if the $160mm estimate holds — Norway has a way of making costs creep up
Great article, as always. I really appreciate your work and passion for this space. Thank you!
Glad you found the page, Mihai. This was big news in the Norway rig market!
Been following you for a while now since I diped my toes in the offshore rigs :)
This is a volatile industry with both good and bad surprises ahead of it, but I believe deepwater energy has tailwinds behind it. Just need oil prices to cooperate. Buckle up!
Learnt the volatility part on my own skin. Now waiting for the cycle to turn 😀
Thank you. Nice work!
Thanks for taking time to read. Big news in semisub market!
Thanks for another great article. Any thoughts on Hercules, still warm stacked and looking for work.
Thanks, Nick. I think Hercules is a good candidate for the Var Energi tender although its history as an exploration-focused rig does not help. I think it will eventually find work.
Joining my previous commenters, great note Tommy!
Is NOL/Mira tangentially affected by this news? I recall they seem to focus on West African employment opportunities for now, but the option to return to the NCS isn‘t without value either…
Good question, Alexandros. All else equal, the addition of one more NCS-eligible rig is negative for Mira’s competitiveness in Norway. However, recent news of the Vår Energi multiyear tender could create an opportunity in Norway if they drop the COSL semisub. I believe Mira is most likely to find its home in West Africa, though too soon to rule out a return to Norway because of the new Vår opportunity. COSL could be the loser when all is said and done but we'll see. I used to think GreatWhite could end up in Namibia but Mira's position in the region makes that less likely and in my opinion, indicates Mira is most likely to stay where she is and its most efficient from a mobilization spend perspective
Appreciate the details and nuance, thank you Tommy!
Thanks Tommy. Insightful as always 👍
John, I appreciate you continuing to read. I admit it's a bit surprising to see a Kermit the Frog avatar commenting on offshore drilling rig posts but I like it!!
It's to remind me that I am just a Muppet, Tommy :)
Great overview!
Thanks, Jay. GreatWhite was potentially a candidate for work in Canada if not Norway
Interesting, was the work off the coast of Newfoundland?
Yes. That's not one of the most capital efficient offshore region in the world though so demand there can be sporadic
Thanks for this update. Excellent. I really appreciate it.
I appreciate your time reading, thanks Michael
Smart move by Noble offloading the jackups to Borr. The jackup market is well-supplied and getting new rigs to market is relatively cheap compared to deepwater, so there's limited pricing power long-term. Using that $210mm in cash to fund the GreatWhite upgrade is essentially swapping a commoditized asset for access to one of the tightest floater markets in the world.
Curious to see if the $160mm estimate holds — Norway has a way of making costs creep up