North Sea Drilling – Brownfield Revivals & Deepwater Opportunities
Exploration drilling in the Norwegian Barents Sea has increased and will continue to grow. Development drilling will see growth in both the Norwegian and UK North Sea. We expect North Sea brownfield investments to increase alongside drilling activities aimed at slowing decline and preserving production levels as much as possible. Whereas in UK waters investments are mainly incentivised by tax breaks, in Norway, Statoil’s sustained commitment and more promising prospects are the main drivers. Based on the above, we expect the North Sea rig market to remain tight in the coming 2-3 years. High-spec newbuilds are available for harsh environment and deepwater drilling but may be uneconomic replacements for old standard units for regional thin-margin brownfield developments.