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Global Jack-up Rig Market Report ----------------------------------------2014


Executive Summary Jackup rigs are mobile, self-elevating drilling platforms equipped with legs that can be lowered to the ocean floor until a foundation is established to support the drilling platform. Once a foundation is established, the drilling platform is then jacked further up the legs so that the platform is above the highest expected waves. Generally, Jackup rigs are subject to a maximum water depth of approximately 350 to 400 feet according to leg length, while some Jackup rigs have hulls that allow them to drill in water depths as shallow as ten feet. The principle difference between Jackup rigs lies in the areas of leg length, seabed/leg interaction (mat versus independent leg), and drilling mode capabilities (cantilever versus slot).

The global market for Jackup rigs witnessed a decline in 2009 for the first time since 2004, mainly as a result of the global economic crisis. The market registered a notable fall in the demand of Jackup rigs, in addition to a historic fall in the rigs utilization rate, reaching below 80%. The market in 2013 reported the highest orders ever in the history of Jackup building due to which market reported high day rates. Furthermore, the notably increasing offshore exploration and productivity operations across the globe are certain to fuel the growth of the worldwide Jackup rigs market in the years to come. Factors like growing oil demand due to rising population rates, increasing E&P expenditures, and improving worldwide economic conditions are boosting the growth in Jack-up rig market. Despite the existence of various growth drivers, there are certain challenges faced by the industry including environmental concerns, offshore accidents, and depletion of oil reserves which can potentially hinder the growth of the industry. The report, “Global Jack-up Rig Market� analyzes the development of the respective market, with a focus on regions including the South East Asia, Middle East and Mexico. The major trends, growth drivers as well as issues being faced by the industry are being presented in this report. The industry is predominated by a handful of players including Keppel Corporation, Sembcorp Marine, and COSCO Corporation contending and vying for capturing market share. The profiles of these leading players are also included in the report along with their key financials and strategies for growth. By combining SPSS Inc.’s data integration and analysis capabilities with our relevant findings, we have predicted the future growth of the industry. We employed various significant variables that have an impact on this industry and created regression models with SPSS Base to determine the future direction of the industry. Before deploying the regression model, the relationship between several independent or predictor variables and the dependent variable was analyzed using standard SPSS output, including charts, tables and tests.


There are more Jackup rigs in the worldwide offshore rig fleet than any other type of mobile offshore drilling rig….. Jack-up Rig Market by Fleet Size (2004-2013)

Units

 Jackup rigs accounted for maximum share of … of global offshore rig fleet in the year 2013. It was followed by Platform Rig and Semisubmersible with market share of … each.  The global Jackup fleet witnessed an annual growth rate of …% to reach … Jackups in 2013 from … Jackups in 2012.  As many as … new Jackup orders were placed in 2013, the highest ever in the history of Jackup building.  In 2013 alone, a total of … jackup rigs were delivered with Singapore’s Keppel shipyard claiming the largest share and record for the largest number of rig deliveries.

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Jack-up Delivery Trend (2004-2013)

Units

Units

Jack-up Rig Order Trend (2004-2013)

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013


Jackup rigs are generally preferred over other rig types in water depths of 400 feet or less, primarily because Jackup rigs provide a more stable drilling platform with above water blowout prevention equipment….  Middle East is the largest market for jackups, with …% share of overall market in terms of number of rigs demanded. Southeast Asia is the second largest market with ….% of the global total market share, followed by Central America with …. % share of global jackup rig demand.

Jack-ups in Southeast Asia (2008-2013)

Units

 Southeast Asia has … Jackup rigs in 2013 as compared … in 2012. Malaysia is the largest market in Southeast Asia for Jackup drilling rig as it has highest Jackup count at …, followed by Indonesia and Vietnam.  There are … Jackup rigs in Middle East as of 2013, out of which … Jackups are actively performing drilling and work over operations in the Persian Gulf and rest … rigs in Red Sea.

2008

2009

2010

2011

2012

 Mexico is one of the largest markets for Jackup rigs which has nearly … rigs as of 2013 as against … in 2012.

2013

Jack-ups in Mexico (2008-2013)

Units

Units

Jack-ups in Middle East (2008-2013)

2008

2009

2010

2011

2012

2013

2008

2009

2010

2011

2012

2013


The expected growth in jackup rig market is attributed to the recovering global economy, coupled with the rising world population which will not only increase worldwide energy consumption but also the demand…..

Number of Rigs

Global Jack-up Rig Market Forecast (2013-20147F)

2013

2014E

2015E

2016E

2017E

The global Jackup rigs fleet was …. units in 2013 and the forecast is indicating an additional …. units in the Jackup fleet by the end of 2017.

World Population has a high correlation with the demand for the global Jackup rigs as rise in the world population results in increase in energy demand. The increase in the energy demand drives the energy prices upwards which results in increase in the production and exploration activity. Thus, overall impact is an increase in the demand for Jackups.

Global Exploration and Production (E&P) expenditure has a high correlation with the global Jackup market. The increase in the global E&P expenditure results in increase in demand for Jackups which acts as platform for the exploration and production activity. A rise in demand for Jackups globally will increase the Jackup rig rate resulting in overall industry growth.

Global oil demand has a high correlation with the demand for the global Jackup market as increase in the demand for oil results in increase in the demand for the Jackups due to increase in production & exploration activity. Also, increase in oil consumption results in higher crude oil prices which makes offshore oil exploration and production more feasible.

Global Jack-up Rig Market Report: 2014 Edition - New Report by Koncept Analytics  

The report, “Global Jack-up Rig Market” analyzes the development of the respective market, with a focus on regions including the South East...

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