AGR urges UK operators to make most of falling rig rates
With a softening rig market upon us, now is a good opportunity for operators to secure a rig for drilling projects at more favorable rates than those we have been seeing recently.
UK Rig Team Leader, Duncan Weir
During the company’s annual rig briefing to operators in London last week (Tuesday, 8 July 2014) delegates heard that a softening rig market means that operators need to grasp this opportunity to secure a rig for their drilling projects.
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 UK 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 challenging times ahead for drilling contractors. The dip in UK North Sea activity offers significant opportunities to capitalise on lower rig rates. We’re seeing reduced day rates as well as mobilisation and de-mobilsation numbers across the board and availability is steadily increasing. This situation provides new opportunities.
“To take advantage of the current situation UK operators should be drill ready and have progressed well preparation in advance.”
Last year, AGR took an innovative step by creating a dedicated Rig Team
to ensure that the best available rigs are secured for their clients’ projects. With unrivalled experience in managing rig campaigns in the major oil hubs around the world, AGR is well positioned to facilitate rig access and contract negotiations secure agreeable terms for parties involved.
The briefing also heard that taking advantage of AGR’s Well Control Insurance
facility - where footage rates for “AGR wells” are lower than operators’ without a track record – can ultimately save operators millions of dollars
AGR recently celebrated drilling its 500th well project. The latest milestone in the company’s successful development represents an average of one new drilling project started every 10 days since 2000.