May 9, 2008

Higher rates recorded for mid-water depth semis

Day rates continue to strengthen for mid-water depth semis, according to ODS-Petrodata's monthly Offshore Rig Day Rate Index reports.

The ODS-Petrodata Mid-Water Depth Semisubmersible Day Rate Index topped 800 last month, and increased to 883 this month, reflecting continued strong demand for rigs in this market segment.  Fleet utilization dropped slightly due to the reintroduction of a formerly retired rig to the fleet.  No easing in demand or day rates is expected in the current market environment.

The ODS-Petrodata Deepwater Floating Rig Day Rate Index stands at 818 this month, lower than the adjusted index for April, but still well within the range expected.  Fleet utilization remains at 100 percent, and demand continues to exceed supply.  As a result, no significant changes in the index are expected in the near-term.

The ODS-Petrodata U.S. Gulf of Mexico Jackup Day Rate Index continues its recovery, topping 300 this month.  The modest recovery in the U.S. Gulf jackup market is expected to continue as the year progresses, although the fleet's downsizing is expected to continue as owners move more of their rigs out of the area.  Fleet utilization has remained flat over the past month.  The ODS-Petrodata U.S. Gulf of Mexico Jackup Day Rate Index is based on market rates for jackups rated from 250 feet to 300 feet.

The ODS-Petrodata North Sea Jackup Day Rate Index increased slightly to 804 this month, reflecting the continued stable nature of this segment of the rig market.  Fleet utilization continues its 100 percent run, and again no change is expected in the near-term.

The ODS-Petrodata Day Rate Indices track the movement of competitive mobile offshore drilling fleet day rates and utilization for four rig categories.  Day rates are charted as an index with the average market day rate in January 1994 equal to 100.  Utilization is the percentage of contracted rigs out of the total competitive fleet supply.  The data is updated on the second Friday of each month by ODS-Petrodata. Additional information is available from ODS-Petrodata in Houston, Aberdeen, Oslo, Dubai and Singapore.