The deepwater rig market will stay relatively slow in terms of day rates for the remainder of this year and into 2015, but will see a resurgence in the mid- and long-term, according to Maersk Drilling’s CEO Claus Hemmingsen.

Speaking recently on the sidelines of A.P. Moller-Maersk’s annual capital markets day, Hemmingsen told Reuters, “If you go back one and a half years ago, you would say [the day rates would reach] $500,000 to $600,000, a few above that, but that would be in Angola. Currently, we’re probably talking about $400,000 to $500,000 for day rates. So we have seen, and will see, a decline in day rates for deepwater [rigs].”

He added that the company has six rigs out of eight coming out of shipyards with “very strong” contracts. “The two rigs [without contracts] are for the deepwater market and when you see a market that is going in the wrong direction, there is of course concern. We have just managed to land a contract extension for one deepwater rig in Angola.”

Offshore