AGR urges North Sea operators to make most of falling rig rates
LONDON -- AGR, an independent well management company, is urging operators in the North Sea to capitalize on increasing availability and falling rig rates.
During the company’s annual rig briefing to operators in London, delegates heard that a softening rig market means that operators need to grasp this opportunity to secure a rig for their drilling projects -- at a significantly lower cost than the high rates seen recently.
AGR Rig Team Leader, Duncan Weir, discussed the cost-cutting initiatives many operators are embarking on in response to the recent surge in rig demand. This has resulted in options lapsing and excess time being available on long-term contracts, meaning sublet time emerging and even early termination of contracts. Weir urged operators to progress future drilling activity where possible if they are to make the most of these rate reductions and availability.
He said: “It’s accepted that there are difficult times ahead for drilling contractors. The dip in North Sea activity offers significant opportunities to capitalize on lower rig rates. We’re seeing reduced day rates as well as mobilization and de-mobilzation numbers across the board and availability is steadily increasing. This situation provides new opportunities.
“To take advantage of the current situation, operators should be drill ready and have progressed well preparation in advance.”