Offshore

Offshore downturn likely worse than the mid-1980s: Pareto

A report out this week from Pareto Securities suggests the offshore downturn will likely be worse than the one suffered in the mid-1980s with the number of contracted floaters likely dropping towards 150 units.

More rigs will have to be cold stacked or scrapped, Pareto said.

More than 20 rigs were standby or laid-up whilst under contract in December, the company noted.

“Whilst this figure will come down during January as some contracts have been terminated while others have ended, it is a clear sign that the fleet rightsizing is not yet completed and that the current market situation where most rigs coming off charter are being idled/stacked will continue,” Pareto stated.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

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