Westwood forecasts varied offshore rig dayrates in 2024 after record highs in 2023

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Westwood Global Energy Group reported a steady increase in dayrates for jackups, semisubmersibles, and drillships throughout 2023, with the latter two types seeing dayrates reaching or exceeding US$500,000 per day, excluding additional services.

Westwood noted that the surge in rates, especially for floating rig types, was encouraging for rig owners and managers who have grappled with low dayrates since 2014.

Day rates for floating rigs went up 40% in past year – WoodMac | OilNOW

However, it predicts that this upward trend might not be the norm for long-term contracts commencing in 2024. Westwood pointed out that most contracts in 2023 fell between US$480,000 and US$500,000 per day price range. Those were primarily for short-term deals spanning one to two wells or for contracts lasting 30 to 200 days or scheduled for 2025 onwards.

Looking ahead to the coming year, Westwood anticipates continued variability in floater dayrates. It predicts that long-term deals could settle in the US$300,000 to US$400,000 price range, while short-term agreements may surpass the record rates seen this year.

In the jackup segment, Westwood noted a contract fixed at US$180,000 per day for work off Australia, along with two contracts secured at over US$165,000 per day for projects in Southeast Asia. Similar to the floating rig segment, Westwood forecasts upward movement in 2024 in line with a projected tight market. However, they expect rates to vary based on factors such as duration, location, and technical specifications.

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