Northwest Europe is set to be one of the global focus areas for exploration and appraisal (E&A) drilling during 2019, particularly off the coasts of Norway and the UK, where 86 E&A wells are planned to be drilled this year. Meanwhile, Northwest Europe rig utilisation is on the rise and availability is starting to diminish.
This report addresses whether there is enough offshore rig availability within the region to cover all planned 2019 E&A wells, when also considering other demand such as development drilling and plug and abandonment operations, and what impact the tightening market will have on rig day rates.
Data used in the report were compiled using Westwood databases RigLogix, Atlas and Sectors, which are used for tracking information regarding offshore rigs and wells.
The report provides a market background, an overview of 2019 uncontracted rig demand and rig availability, as well as rig supply/demand balance forecasts for both the jackup and floating rig fleets. The report also considers the potential for rigs to enter the market either through relocation from other regions or reactivation of cold-stacked units. In addition, analysis has been carried out on day rates since 2014 and how they are expected to react to utilisation changes during this year.