The floating rig market: rising from the depths

Active utilisation of the floating rig fleet has dropped from over 90% in 2014 to less than 70% present day. Early signs of recovery are beginning to take shape. Fixtures are on the rise and leading edge day rates have reached the bottom. As pricing begins to recover, operators will look for the most strategic ways to keep drilling costs down. Leading-edge rates for the top-tier, high-specification rigs have the potential to double over the next three years as operators seek to maximize efficiency in drilling programs in an effort to keep costs down. In this insight, we touch on the current state of the floating rig market, highlight the changing nature of supply, dive into key regional pockets of interest and provide a glimpse of our future view.