WEST AFRICAN RIG MARKET – A SLOW-BURN RECOVERY
The West African offshore rig market has been one of the hardest hit during the oil price downturn.
Once a region that attracted premium units and demanded some of the highest rig day rates – some rigs commanded over $600,000 – it quickly descended into an area with a glut of stacked rigs and a demand drought. Figure 1 shows that over the past few years utilisation in the area has plummeted to lows of 37% and 51% in the jackup and floating rig (drillship and semisubmersible) segments, respectively. However, some of the utilisation demise can be attributed to The Canary Islands, which has evolved into a popular long-stay car park for out of work floating rigs, and this has put an added strain on an already lagging market.