NOV RIG CENSUS
TABLE 6: INTERNATIONAL LAND RIG UTILIZATION RATES, 2012-2022 2022
2021 2020
2019 2018
2017 2016
2015 2014
2013 2012
Europe/FSU/Russia 67%
70% 54%
74% 75%
73% 72%
96% 96%
75% 94%
Africa 60%
53% 54%
84% 79%
55% 53%
75% 87%
83% 96%
Middle East
69% 59%
80% 85%
84% 77%
75% 99%
100% 94%
100% Asia/China
84% 83%
75% 76%
78% 79%
77% 67%
86% 96%
96% Latin America
69% 55%
18% 73%
72% 42%
41% 67%
84% 80%
88% OVERALL
73% 71%
62% 88%
77% 71%
70% 81%
91% 85%
95% Table 6: Relaxation of OPEC+ cuts and a
buoyant oil price increased interna-
tional land fleet sizes and utilization
everywhere except in Europe, where the
war in Ukraine had the opposite effect.

Figure 5: Utilization continues to in-
crease as the offshore fleet reached
76% utilization in the 2022 census.

ing nine reactivations and eight new-
builds, six of which were jackups and two
were stranded drillships. This brings the
total number of available MODUs to 616.

The largest MODU region was the
Middle East, with just over one-quarter
of the fleet – all jackups. The Middle East
is expected to add incremental rigs, with
several jackups already preparing to move
into the region to begin contracts in late
2022 and early 2023.

The Far East was the second-largest
region, with 14.1% of the fleet, mostly
jackups. Northwest Europe had 11.5% of
the fleet, with a more even split between
harsh-environment jackups and semisub-
mersibles. This is the largest region for
semisubmersibles in the world.

The US GOM remains the largest region
for the drillship segment, with 20 drill-
ships counted during the census period, or
5.8% of the global MODU fleet.

Global offshore mobile
activity In the 2021 census, utilization had
increased mainly due to attrition. This
year, the 6% increase in utilization – to 76%
– can be attributed to more rigs going to
work. Active MODUs went from 436 in the
2021 census to 470 this year, the highest
level of activity since 2016, when most rigs
were still working on contracts handed
out before the downturn began.

With increased activity, drilling con-
tractors are regaining some much-need-
ed pricing power, especially in the drill-
ship market. Several drillships have been
awarded contracts with dayrates of more
than $400,000. The US GOM leads in
dayrate increases as the drillship market
is essentially sold out. Brazil and West
Africa are looking to increase activity and
see dayrates grow.

The jackup segment has also seen
dayrate increases as Middle Eastern NOCs,
most notably Saudi Aramco and ADNOC,
are increasing production and bringing in
jackups from outside the Middle East. This
includes rigs that had been cold stacked
for years and rigs that had been stranded
in shipyards.

While utilization for semisubmers-
ibles is improving year over year, it is
not increasing at the same pace as the
other MODU segments. The Norwegian
Continental Shelf, normally a driver for
dayrates in the semisubmersible segment,
had a slower year. This market is expected
to stay soft until mid-2023.

Offshore industry trends
While current dayrate levels do not yet
support ordering newbuilds, more rigs are
being reactivated, including cold-stacked
and stranded rigs. Drilling contractors are
waiting for firm contracts before consider-
ing reactivation. This discipline is likely
to continue, but with fewer rigs available,
operators will likely have to pay for partial
or all reactivation and mobilization costs.

The increase in tendering activity in
the Middle East has resulted in several
jackups being picked up from shipyards
through bareboat agreements as seen in
the past couple of years and outright sales.

Despite this, there are still 26 jackups wait-
ing for delivery, although most of these
are not of the designs currently favored by
rig contractors. Twenty of the 26 jackups
DRILLING CONTRACTOR • NOVEMBER/DECEMBER 2022
37