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Offshore Rig Construction Market to 2016 and Current Rig Deployment Scenario - Rig Designs Promoting Better Safety Conformation and Increased Operational Capabilities being Key to Newbuild Orders - Product Image

Offshore Rig Construction Market to 2016 and Current Rig Deployment Scenario - Rig Designs Promoting Better Safety Conformation and Increased Operational Capabilities being Key to Newbuild Orders

  • Published: January 2013
  • Region: Global
  • 109 Pages
  • GBI Research

“Offshore Rig Construction Market to 2016 and Current Rig Deployment Scenario - Rig Designs Promoting Better Safety Conformation and Increased Operational Capabilities being Key to Newbuild Orders”. The study, which is an offering from the the authors Energy Research Group, provides an in-depth analysis of the offshore rig construction market worldwide and highlights the various concerns, shifting trends and major happenings in regions worldwide.

The study, which is an offering from the company's Energy Research Group, provides an in-depth analysis of the global offshore rig construction market and highlights various concerns, key trends and challenges, along with major companies in the industry. The report provides forecasts for the offshore rig construction industry to 2016. It also provides segmental forecasts of the offshore rig construction market worldwide by rig type, and provides comprehensive data on current offshore rigs deployed globally, by rig type.

The report also provides in-depth information on new build rig orders by major offshore drilling contractors, by country of rig manufacturing shipyard, and expected new builds and their expected deployment READ MORE >

1.1 List of Tables
1.2 List of Figures

2 Offshore Rig Construction Market to 2016 and Current Rig Deployment Scenario - Introduction

3 Offshore Rig Construction Market – Overview
3.1 The Significance of the Offshore Rig Construction Industry as Part of the Value Chain in the Upstream Oil and Gas Sector
3.2 Key Segments of the Offshore Rig Construction Industry
3.2.1 Jack-up Rigs
3.2.2 Semisubmersibles
3.2.3 Drillships
3.2.4 Fixed Platforms
3.2.5 Compliant Towers
3.2.6 Tension Leg Platforms
3.2.7 Spar Platforms
3.2.8 Barges
3.2.9 Tender Rigs
3.2.10 Premium and Ultra-premium Jack-up Rigs

4 Offshore Rig Construction Market to 2016 and Current Rig Deployment Scenario – Market Segmentation
4.1 Geographic Scenario of the Global Offshore Rig Construction Industry
4.2 Segmental Analysis of the Global Offshore Rig Construction Industry

5 Key Trends and Challenges – Offshore Rig Construction Industry
5.1 Key Trends and Challenges – Offshore Rig Construction Industry
5.1.1 Demand for Semisubmersibles and Drillships Expected to Rise as Offshore E&P Companies Venture into Deepwater and Ultra-Deepwater Basins for Hydrocarbon Exploration
5.1.2 High Offshore Day Rates Pushing Demand for Rig Upgrades in the Form of New Changes in Blow-out Preventer Applications
5.1.3 New Rig Orders Being Driven by Stringent Safety Regulations, Aging of Old Rigs, Harsh-environment Rigs and Sustained High Oil Prices
5.1.4 Long-term Contracts Expected to be Strongly Favored by E&P Operators for Hiring Deepwater and Ultra-deepwater Rigs
5.1.5 South Korea Expected to Continue being the Market Leader in terms of the Number of Newbuild Orders for Rigs in the Deepwater Segment
5.1.6 The Rig Equipment Business is Expected to Benefit from the Imposing of Stringent Regulatory Norms Leading to Newer, Safer Equipment Designs
5.1.7 Business Strategy by Shipyards to Diversify into Deepwater Rig Construction and Subsea Equipment Manufacturing Propelling Their Profit Margins
5.1.8 Orders for Jack-up Rigs with Operational Capabilities in Water Depths of 300 Feet or More on the Rise
5.1.9 Improved Risk Assessment Expected to Reduce Costs and Time Delay for Rig Construction Projects
5.1.10 Time Delays in Projects along with High Manufacturing Costs due to Competition Proving to be Unfavorable to the Brazilian Offshore Rig Construction Industry
5.1.11 Technological Developments in Offshore Rig Construction could Lead to Successful Exploration and Production in Geographically Challenging Areas

6 Offshore Rig Construction Industry Forecasts to 2016 and Statistics of In-service Offshore Fleet
6.1 Offshore Rig Construction Newbuild Expenditure Forecasts to 2016
6.2 Offshore Rig Construction Newbuild Expenditure Forecasts to 2016, by Segment
6.2.1 Offshore Rig Construction Newbuild Expenditure Forecasts to 2016, Jack-up Rigs
6.2.2 Offshore Rig Construction Newbuild Expenditure Forecasts to 2016, Semisubmersible Rigs
6.2.3 Offshore Rig Construction Newbuild Expenditure Forecasts to 2016, Drillships
6.3 Offshore Rig Order Costs, Forecasts to 2016, by Segment
6.3.1 Offshore Rig Order Costs, Forecasts to 2016, Jack-up Rigs
6.3.2 Offshore Rig Order Costs, Forecasts to 2016, Semisubmersible Rigs
6.3.3 Offshore Rig Order Costs, Forecasts to 2016, Drillships
6.4 Currently Pending Newbuild Rig Orders by Offshore Drilling Contractors, Updated October 2012
6.5 Pending Rig Orders by Rig Segment and Rig Availability in Future
6.5.1 Pending Rig Orders and Rig Availability, Jack-up Rigs, Updated October 2012
6.5.2 Pending Rig Orders and Rig Availability, Semisubmersibles, as of October 2012
6.5.3 Pending Rig Orders and Rig Availability, Drillships, as of October 2012
6.5.4 Pending Rig Orders and Rig Availability, Tender Rigs, Updated October 2012
6.5.5 Pending Rig Orders and Rig Availability, Inland Barges, Updated October 2012
6.6 Current Status of Worldwide Offshore Rigs and Expected Newbuilds
6.6.1 Current Status, Number of Worldwide Offshore Rigs and Expected Newbuilds
6.7 Current Status of Worldwide Fleet in Operation by Individual Offshore Structure and Type, and Deployment Location
6.7.1 Current Status, Worldwide Fleet in Operation, Jack-up Rigs, by Rig Name, Rig Manager, Current Deployment Region, Current Status and Country of Deployment
6.7.2 Current Status, Worldwide Fleet in Operation, Semi-submersible Rigs, by Rig Name, Rig Manager, Current Deployment Region, Current Status and Country of Deployment
6.7.3 Current Status, Worldwide Fleet in Operation, Drilships, by Rig Name, Rig Manager, Current Deployment Region, Current Status and Country of Deployment
6.7.4 Current Status, Worldwide Fleet in Operation, Inland Barges, by Rig Name, Rig Manager, Current Deployment Region, Current Status and Country of Deployment
6.7.5 Current Status, Worldwide Fleet in Operation, Drill Barges, by Rig Name, Rig Manager, Current Deployment Region, Current Status and Country of Deployment
6.7.6 Current Status, Worldwide Fleet in Operation, Tender Rigs, by Rig Name, Rig Manager, Current Deployment Region, Current Status and Country of Deployment
6.7.7 Current Status, Worldwide Fleet in Operation, Platform Rigs, by Rig Name, Rig Manager, Current Deployment Region, Current Status and Country of Deployment
6.7.8 Current Status, Worldwide Fleet in Operation, Submersibles, by Rig Name, Rig Manager, Current Deployment Region, Current Status and Country of Deployment
6.8 Expected Newbuild Offshore Rigs, by Individual Rig Segment, and by Country of Manufacturing Shipyard
6.8.1 Expected Newbuild Jack-up Rigs, by Country of Manufacturing Shipyard
6.8.2 Expected Newbuild Semisubmersible Rigs, by Country of Manufacturing Shipyard
6.8.3 Expected Newbuild Drillships, by Country of Manufacturing Shipyard
6.8.4 Expected Newbuild Inland Barges, by Country of Manufacturing Shipyard
6.8.5 Expected Newbuild Tender Rigs, by Country of Manufacturing Shipyard

7 Appendix
7.1 Abbreviations
7.2 Bibliography
7.3 Market Definitions
7.4 Methodology
7.5 Coverage
7.5.1 Secondary Research
7.5.2 Primary Research
7.5.3 Expert Panel Validation
7.6 Contact Us
7.7 About
7.8 Disclaimer

1.1 List of Tables

Table 1: Number of Offshore Rigs Under Construction/Upgrade, by Rig Segment, Updated October 2012
Table 2: Total Annual Newbuild Construction Expenditure Forecasts, $bn, 2005–2016
Table 3: Newbuild Jack-up Rig Construction Expenditure Forecasts ($bn), 2005–2016
Table 4: Newbuild Semisubmersible Rig Construction Expenditure Forecasts, $bn, 2005–2016
Table 5: Newbuild Drillship Construction Expenditure Forecasts, $bn, 2005–2016
Table 6: Jack-up Rig Order Cost ($m Per Rig), 2005–2016
Table 7: Semisubmersible Rig Order Cost ($m per Rig), 2005–2016
Table 8: Drillship Order Cost ($m per Rig), 2005–2016
Table 9: Newbuild Rig Orders, Updated October 2012
Table 10: Newbuild Rig Construction Orders by Offshore Drilling Contractor, Updated October 2012
Table 11: Worldwide Jack-ups Construction Survey, Updated October 2012
Table 12: Jack-ups, Number of Units Expected to be Delivered, by Year
Table 13: Worldwide Semisubmersibles Construction Survey, Updated October 2012
Table 14: Semisubmersibles, Number of Units Expected to be Delivered, by Year
Table 15: Worldwide Drillships Construction Survey, as of October 2012
Table 16: Drillships, Number of Units Expected to be Delivered, by Year
Table 17: Worldwide Tender Rigs Construction Survey, as of October 2012
Table 18: Tender Rigs, Number of Units Expected to be Delivered, by Year
Table 19: Worldwide Inland Barges Construction Survey, Updated October 2012
Table 20: Inland Barges, Number of Units Expected to be Delivered, by Year
Table 21: Offshore Rigs and Expected New-builds, as of October 2012
Table 22: Global In-service Rig Fleet Status as of October 2012, by Rig Type
Table 23: Global Newbuild Rig Fleet Status as of October 2012, by Rig Type
Table 24: Number of Offshore Rigs, by Current Status for Each Rig Type
Table 25: Current Status, Worldwide Fleet in Operation, Jack-up Rigs, by Rig Name, Rig Manager, Current Deployment Region, Current Status and Country of Deployment
Table 26: Current Status, Worldwide Fleet in Operation, Semisubmersible Rigs, by Rig Name, Rig Manager, Current Deployment Region, Current Status and Country of Deployment
Table 27: Current Status, Worldwide Fleet in Operation, Drillships, by Rig Name, Rig Manager, Current Deployment Region, Current Status and Country of Deployment
Table 28: Current Status, Worldwide Fleet in Operation, Inland Barges, by Rig Name, Rig Manager, Current Deployment Region, Current Status and Country of Deployment
Table 29: Current Status, Worldwide Fleet in Operation, Drill Barges, by Rig Name, Rig Manager, Current Deployment Region, Current Status and Country of Deployment
Table 30: Current Status, Worldwide Fleet in Operation, Tender Rigs, by Rig Name, Rig Manager, Current Deployment Region, Current Status and Country of Deployment
Table 31: Current Status, Worldwide Fleet in Operation, Platform Rigs, by Rig Name, Rig Manager, Current Deployment Region, Current Status and Country of Deployment
Table 32: Current Status, Worldwide Fleet in Operation, Submersibles, by Rig Name, Rig Manager, Current Deployment Region, Current Status and Country of Deployment
Table 33: Expected Newbuild Jack-up Rigs, by Country of Manufacturing Shipyard
Table 34: Expected Newbuild Semisubmerible Rigs, by Country of Manufacturing Shipyard
Table 35: Expected Newbuild Drillships, by Country of Manufacturing Shipyard
Table 36: Expected Newbuild Inland Barges, by Country of Manufacturing Shipyard
Table 37: Expected Newbuild Tender Rigs, by Country of Manufacturing Shipyard

1.2 List of Figures

Figure 1: Number of Offshore Rigs Under Construction/Upgrade, by Rig Segment, Updated October 2012
Figure 2: Total Annual Newbuild Construction Expenditure Forecasts, $bn, 2005–2016
Figure 3: Newbuild Jack-up Rig Construction Expenditure Forecasts ($bn), 2005–2016
Figure 4: Newbuild Semisubmersible Rig Construction Expenditure Forecasts, $bn, 2005–2016
Figure 5: Newbuild Drillship Construction Expenditure Forecasts, $bn, 2005–2016
Figure 6: Jack-up Rig Order Cost ($m Per Rig), 2005–2016
Figure 7: Semisubmersible Rig Order Cost ($m per Rig), 2005–2016
Figure 8: Drillship Order Cost ($m per Rig), 2005–2016
Figure 9: Newbuild Rig Orders, Updated October 2012
Figure 10: Jack-ups, Number of Units Expected to be Delivered, by Year
Figure 11: Semisubmersibles, Number of Units Expected to be Delivered, by Year
Figure 12: Drillships, Number of Units Expected to be Delivered, by Year
Figure 13: Tender Rigs, Number of Units Expected to be Delivered, by Year
Figure 14: Inland Barges, Number of Units Expected to be Delivered, by Year
Figure 15: Global In-service Rig Fleet Status as of October 2012, by Rig Type
Figure 16: Global Newbuild Rig Fleet Status as of October 2012, by Rig Type
Figure 17: Number of Offshore Rigs, by Current Status and Rig Type
Figure 18: Expected Newbuild Jack-up Rigs, by Country of Manufacturing Shipyard
Figure 19: Expected Newbuild Semisubmerible Rigs, by Country of Manufacturing Shipyard
Figure 20: Expected Newbuild Drillships, by Country of Manufacturing Shipyard
Figure 21: Expected Newbuild Tender Rigs, by Country of Manufacturing Shipyard

The current scenario as of early 2013, and the expected scenario in the next five years, signals a strong demand for deepwater and ultra-deepwater rigs, with multiple newbuild orders for semisubmersibles and drillships pending in various shipyards worldwide, especially in South-east and East Asia; and South Korea. Hence, rig construction majors from South-east Asia have benefited from the rig construction boom and are expected to continue to record growth and increased business during 2012–2016.

Demand for Semisubmersibles and Drillships Expected to Rise as Offshore E&P Companies Venture into Deepwater and Ultra-deepwater Basins for Hydrocarbon Exploration

It has been observed that offshore rig manufacturing shipyards are increasingly receiving newbuild orders from offshore drilling contractors for deepwater and ultra-deepwater rigs. This is because as attempts to explore and produce hydrocarbons from basins in deepwater and ultra-deepwater offshore areas are being positively evaluated by offshore E&P players in offshore regions worldwide. Deepwater and ultra-deepwater drilling involves operations exceeding water depths of 500 and 5,000 feet, respectively. In recent years, geographically challenging and remote areas such as the Arctic Ocean, the Barents Sea, and the Norwegian Sea have been hotbeds of seismic and exploration activity, due to their commercial hydrocarbon reserve potential.

Despite this kind of exploration being a riskier activity, offshore E&P players hope to benefit from the increasing promise of hydrocarbon reserve potential gains in such high-risk activities as ultra-deepwater or harsh-environment exploration, which is driven by rising demand, and hence surging crude oil prices. This scenario is expected to drive the demand for deepwater and ultra-deepwater rig segments such as drillships and semi-submersibles; and subsequently business for rig construction shipyards associated with deepwater and ultra-deepwater rig construction in shipyards worldwide.

In late 2011, the financial markets were in a poor credit situation, and this has affected offshore rig contractors in terms of the number of newbuild rig orders they can generate. Due to financial uncertainty, rig contractors and managers have reduced newbuild rig orders to offshore rig construction shipyards. Also, the cost of constructing offshore rigs has increased by 10% in the past six months, and this has led to a temporary stalling of new rig orders. As a result, the smaller players in offshore rig contracting business are considerably losing out on their net asset value, and as a result are unable to economically sustain their operating expenses.

Due to these difficulties associated with the hampering of their regular business functioning, smaller offshore drilling contractors are left with little option but to be acquired by their larger rivals, often after facing bankruptcy. The latter see an advantage in these acquisitions, as a beneficial strategy to inorganically grow by taking advantage of the niche technological and marketing forte of smaller players in specific segments and geographies, at relatively low costs of acquisition due to the financial situation of the acquired company in many cases.

For example, deepwater drilling companies Transocean Ltd. and Seadrill recently agreed to fully or partially purchase offshore drilling companies as part of their business expansion plans. In August 2011, Aker Drilling ASA was fully purchased by Transocean as part of the latter's ultra-deepwater rig fleet expansion plans, and Seadrill bought 33.75% of Asia Offshore Drilling. Prior to this, Seadrill had acquired Scorpion Offshore and lost a bid against Ensco plc to buy Pride International Inc, in February 2011.

In summary, the demand for offshore drilling activity and offshore rigs is expected to increase as the global search for fresh hydrocarbon reserves continues. For example, there are currently deepwater and ultra-deepwater explorations taking place in offshore Brazil and West Africa, and successful discoveries have been made in offshore Norway and explorations in harsh offshore environments such as the Arctic.

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