Bassoe Rig Analytics weekly rig market round-up (week 49)

Bassoe Rig Analytics weekly rig market round-up (week 49)
This week a number of rigs were preparing to return to work after Covid-19 delays or suspensions, more operators announced plans for new drilling campaigns over the coming years, while Seadrill Partners announced that it has filed for Chapter 11.

In case you missed it, you can access last week's Rig Market Round-Up here.

Bassoe Rig Analytics Announcement


We're proud to announce the launch of the new Bassoe Rig Values offshore drilling rig valuation application.Based on the success of Bassoe Analytics' Rig Valuation Tool, we've built a new valuation product with enhanced functionality and insight into the rig market. Bassoe Rig Values gives you access to continually updated independent valuations with no conflicts of interest. Check out our video or go to our product page for more details. If you're interested in a subscription, please contact Barry at


Drilling Activities & Discoveries


Ultra-deepwater drillship Valaris DS-12 has commenced drilling at BP's Platina field in Block 18, offshore Angola. The rig is committed to the operator for four firm wells plus four one-well options. 

Equinor has received consent to undertake drilling of Norwegian exploration well 7220/7–4 targeting the Isflak prospect in PL532. Drilling will be carried out using harsh-environment semisub Transocean Enabler which is on hire with the operator until at least 2024

ExxonMobil has now moved ultra-deepwater drillship Stena Carron from the Tanager –1 well site to the Redtail –1 well site to continue drilling operations within the Stabroek Block of the Guyana Maritime Zone. Drilling is expected to continue until 31 December 2020. The rig is committed to the operator until at least mid-2021.

The Norwegian Petroleum Directorate has granted MOL Norge a drilling permit for wildcat well 2/9–6 S in production licence PL 617, which will be drilled using jackup Maersk Integrator. Drilling will begin after the rig concludes work at production well 16/1-D-17 for Aker BP on the Ivar Aasen field in production licence PL 001B.

Equinor has completed drilling of the 7018/5–1 wildcat targeting the Spissa prospect on production licence 960 in the Barents Sea, but it was classified as dry. The well was drilled using Seadrill harsh-environment semisub West Hercules, which will now move to drill a pilot well on the Askeladden field in Equinor-operated PL064, also in the Barents Sea.


Rig Mobilizations

Diamond Offshore semisub Ocean Monarch has departed Singapore and is now headed for Myanmar. The rig has a new contract lined up with Posco Daewoo that will see it committed for drilling a minimum of seven wells plus further options are also available under the contract for extension.

Seadrill-managed ultra-deepwater drillship Sonangol Libongos has departed Walvis Bay, Nambia, and is now understood to be en route back to Angola where it is due to restart drilling operations with Eni late this month. The drilling contract was suspended in May this year due to the Covid pandemic. Operations are expected to continue until September 2021. 

COSL newbuild jackup Zhaoshang Hailong 7 is mobilizing from China to Mexico. It is understood the rig has a new long-term contract lined up in the region. 



1986-built jackup Valaris JU-100 has been moved to cold stack after having been idle since completing its last contract with Repsol Sinopec in Q4 2019. Meanwhile, other British-based Valaris jackups which are currently stacked, Valaris JU-101, Valaris 121 and Valaris JU-247– are being bid on work in the region with the latter understood to be close to a new award. 


Rig Demand

ONGC has issued its long-awaited tender for five jackups to undertake work in Indian waters, commencing next year. Bids are due in during January 2021.  

Drilling at the Irish Barryroe oil and gas field is now set to commence during late 2022, with the campaign to initially cover four wells (three producers and one water injector). A farm-out agreement was recently completed with SpotOn Energy acquiring a 50% working interest in the project. The company has already started sourcing the rig which, subject to regulatory approval, is expected to mobilize to the Barryroe field in late 2022. During July 2020, SpotOn reported that it had signed binding agreements with Schlumberger, Aker Solutions, Maersk Drilling, Keppel FELS, Aibel, and AGR all of which will be involved in the appraisal and development of the field. 

Santos and Carnarvon Petroleum are planning to drill two exploration prospects near the Australian Dorado field in 2021. The Pavo and Apus prospects will be drilled prior to taking FID for the Dorado development, which is now planned for first half 2022.

Santos says that it is proceeding with its Barossa development, located off the northern coast of Australia, with a final investment decision targeted in the first half of 2021. It is understood that the field will be developed in a phased approach with the initial drilling campaign to consist of around six wells to be drilled in a two-year period using a moored semisub. 

Tullow Oil and partners in the Orinduik block, located offshore Guyana, are planning to drill at least two more exploration wells at the licence. Licence partner Eco Atlantic stated that "we hope to have target selection in the next six months, allowing us to begin drilling preparation in the second half of 2021.” Ultra-deepwater drillship Stena Forth was last used to drill at the acreage. 

Chrysaor has confirmed that it is looking to hire two additional rigs for North Sea operations in 2021, one of which will be put to work in the UK sector and another that will be used off Norway. The operator is currently using jackup Valaris JU-92 and semisub Paul B Loyd Jr in British waters and will also start using semisub COSLInnovator from early next year in the Norwegian sector. 

Eni has re-started its search for a drillship to undertake an exploration campaign offshore Mozambique, consisting of one firm well plus a one-well option with operations beginning in 2022. Meanwhile, its understood that the operator has also re-commenced its search for a moored or DP3 semisub to work offshore Angola beginning in the middle of 2021. The firm campaign will around six months with options available thereafter. 


Oil Price 

The oil price rallied late on Wednesday following news that Britain has approved a Covid-19 vaccine, which will be rolled out from next week as well as mounting expectations that producing countries will maintain output limits next year. By early Thursday Brent Crude oil prices had reached its highest point since March after Opec+ members agreed to increase output by a only 500,000 barrels per day from January 2021.




Seadrill Partners LLC (the “Company”) has been in negotiations with an ad hoc group of lenders under the Company’s Term Loan B credit facility (the “TLB”) regarding a consensual reorganization of the Company’s balance sheet. In consultation with—and with the support of—the ad hoc group, the Company has filed voluntary petitions under chapter 11 of the Bankruptcy Code to preserve value and to continue the operation and marketing its assets. The Company intends to use the bankruptcy process to ensure that all customer, vendor and employee obligations are met without interruption and to complete a consensual restructuring of its debt.

Velesto's Drilling Services segment registered a 33.8% decrease in revenue to RM127.8 million in the third quarter of 2020, mainly due to lower average jackup rig utilization of 60% as compared to 92% in the corresponding quarter. As a result of the above, the Drilling Services segment registered a lower profit before tax of RM13.3 million against the profit before tax of RM37.6 million reported in the corresponding quarter.

For the third quarter of 2020, Northern Ocean recorded operating revenue of $21.4 million compared to $24.8 million in the previous quarter. Total operating expenses were $28.1 million compared to $27.2 million in the previous quarter. Rig operating expenses were $20.3 million, which is $1.6 million higher than the previous quarter mainly due to repair costs associated with a deck crane incident as well as replenishment of spare parts inventory. The net loss for the company in the third quarter was $8.1 million resulting in a basic and diluted loss per share of $0.13. The Company’s revenue backlog at September 30, 2020 is estimated at $269 million, excluding options and performance bonuses and adjusted for current estimates of well programs. The fourth quarter to-date technical utilization for the fleet is approximately 89%.

For the third quarter of 2020, Borr Drilling reported total operating revenues of $59.2 million, net loss of $61.9 million and Adjusted EBITDA of negative $10.1 million.The combined Adjusted EBITDA of the four separate Mexican JVs that the Company has ownership in was $45.2 million in the third quarter of 2020, compared to Adjusted EBITDA in the second quarter of 2020 of $30.1 million, an increase of $15.1 million, or 50%, quarter on quarter. As reported earlier, the Company reports that significant efforts have been made during the quarter to strengthen its financial position and extend the liquidity runway. Specific discussions are taking place with each of the creditor groups. The desired outcome, once completed, will include contributions from all creditors, by either a reduction or deferral of cash interest and other related costs, an extension of maturities and a more flexible security package.


Other News 


Brazil has scheduled its 17th oil and gas licensing round for October 7, 2021. The round will consist of 92 available blocks spanning 11 sectors in four offshore sedimentary basins – Campos, Pelotas, Potiguar and Santos. 

Denmark, the European Union’s biggest oil producer, is to stop offering new licenses in the North Sea and phase out production altogether in 2050 as it moves away from fossil fuels. The planned 8th licensing round will be abandoned, as will all future exploration offshore the country. 

Get on-demand offshore rig values from Bassoe Rig Values



Did you know that Bassoe Analytics has launched Bassoe Analytics Premium, a subscription service which gives users enhanced access to our offshore rig market data and analysis platform?



Do you have the Bassoe Analytics mobile app? 

On the back of the success of the Bassoe Analytics website, we've decided to go mobile. Now you can access our open source offshore rig database when you're on the go.  Find out more and download the app from the Google Play or App Store here.


Data: Bassoe Analytics, Image attribution: Stena Drilling.

Sign up for our newsletter

Get email updates for our latest offshore rig market commentary.

Phone Get Bassoe Analytics on your phone! Stay updated on the go with our free mobile app.