Day Rate Index

Fleet utilization for Northwest Europe Standard Jackups reaches 100 percent

May 17, 2013

HOUSTON, TEXAS: According to the IHS Petrodata monthly Offshore Rig Day Rate Index report, utilization increased in all rig market categories apart from Mid-Water Depth Semisubmersibles, which decreased slightly in May. The Northwest Europe Standard Jackup category recorded a significant increase in utilization to reach 100 percent, a four-year high.

The drilling rig day rate index for US Gulf of Mexico 250 to 300ft Jackups decreased this month after record highs in recent months. The Deepwater Floating Rig Day Rate Index also experienced a considerable drop in May. However, on a positive note the Mid-Water Depth Semisubmersible Day Rate Index figure increased this month, while the Northwest Europe Standard Jackup Day Rate Index remained unchanged.

The IHS Petrodata US Gulf of Mexico 250 to 300ft Jackup Day Rate Index dropped by 24 points this month to 514. Utilization during May saw an improvement with an increase of 5 percent to 73 percent. This is the highest utilization level recorded for this category since January 2009. It is also a considerably improved level of utilization compared to last year, as it averaged just 58 percent during May 2012.

The IHS Petrodata Northwest Europe Standard Jackup Day Rate Index remained at the same level as April at 589 points. This is still approximately 53 points higher than the index level recorded during May last year. Fleet utilization increased considerably, by 10 percent, to reach 100 percent in May, after being static for the previous 15 months.

The IHS Petrodata Mid-Water Depth Semisubmersible Day Rate Index stands at 888 points in May, a 77 point increase compared to the adjusted April figure. This figure is slightly greater than in May last year, however it is lower than the high levels recorded over the last 12 months, as this index reached over 900 points on several occasions during 2012. Utilization for this category fell in May to an average of 76 percent.

The IHS Petrodata Deepwater Floating Rig Day Rate Index decreased by 45 points this month to 884. This is 13 points lower than the index level recorded in May 2012. Utilization for this category of rig increased by 2 percent in May to 98 percent, a return to the level of utilization experienced over the majority of 2012.

The IHS Petrodata Day Rate Indices track the movement of competitive mobile offshore drilling fleet day rates and utilization for four rig categories. Day rates published by IHS are presented in good faith based on our best understanding of the market at the time, and may be subject to adjustment. Day rates are charted as an index with the average market day rate in January 1994 equal to 100. Utilization is the percentage of contracted rigs out of the total competitive fleet supply. The data is updated on the third Friday of each month by IHS. Additional information is available from the IHS Petrodata team in Houston, Aberdeen, Oslo, Dubai and Singapore.