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$75 billion CAPEX planned in drilling rigs on next 5 years

With more than $75 billion Capital Expenditure to be invested in drilling rigs in the next 5 years, the pipeline of business opportunities in drilling rigs has never been so loaded according to Upstream, the Norwegian Oil & Gas newspaper.

From their well documented analysis published in March about the drilling rigs, Upstream explains how this industry should break another historic record, the daily leasing rate reaching $800,000 per day as seen in the last Ocean Rig contract signed for West Africa heavy duty semi-submersible Eirik Raude.

The $75 billion Capital Expenditure calculation is based on a list of 155 drilling rigs to be designed and built from now to 2017 for 54 Offshore services companies, such as Mearsk, Noble, Seadrill, Transocean, etc… 

With an average cost of $483 million per drilling rigs, the main type of design is Jack-up (50%), then the Drilling ships (34%) and the Semi-submersible type (13%).

38% of these drilling rigs in progress are designed for deep water, exceeding 10,000 ft.

Regarding the shipyards where these drilling rigs should be executed, South Korea and Singapore are leading the game but some other countries are now emerging as reflected by numbers of units below:

  • South Korea: 49
  • Singapore: 45
  • China: 33
  • Brazil: 30
  • UAE: 8
  • India: 4

The number of drilling rigs to be made in Brazil may see some changes because the Brazilian Government request them to be home made, but there is uncertainty about the capability of the local shipyards to design and produce as many quantities in the given time frame given to Petrobras to catch up with 2020 oil production targets.

Therefore a number of these Brazilian planned units may be relocated around the World to get them done on time.  

For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer

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