Chart of the Day: See the supply glut in floaters beginning 2017

Most of these rigs will be absorbed as drillers.

In Singapore’s offshore and marine sector, floaters to be delivered in 2014-16 will account for 20% of the current fleet.

According to Maybank Kim Eng, most of these rigs will ultimately be absorbed as drillers would prefer to utilise their assets rather than leave them idle. In order to do so, rates would have to be aggressively marked down. Recent fixtures show 25-40% lower rates than their last contracts.

Here’s more from Maybank Kim Eng:

Transocean Spitsbergen, a semisub, was re-contracted to Statoil for USD400,000/day from 10 Nov, down 25% from USD535,000/day.

Maersk Venturer, a new drillship, has a short-term charter with Total at USD378,000/day. Sister vessels, Maersk Viking and Maersk Valiant, were contracted for three years at USD634,000/day and USD557,000/day.

Diamond Offshore contracted a seventh-generation drillship with Hess for USD400,000/day.