The offshore rig market in Asia-Pacific (APAC) is busy, once again. Market activity has picked up pace following the demand decimation and activity stagnation caused by the dual impact of unfavourable oil prices and COVID-related restrictions since the first quarter of 2020.
Backlog more than doubles in 2021 against 2020
Regional oil and gas operators have started to revive plans that they had to put on hold due to COVID, which is translating into increased tendering activity. This is evident as the total backlog added in APAC (comprising Southeast Asia, South Asia, Oceania, and Far East) during 2021 was approx. 71 years, which more than doubled against the backlog added in 2020 (approx. 34 years). The chart below indicates the top countries in APAC, in terms of backlog added.
Regional NOCs continue to drive demand
For 2021, Esgian recorded a total of 94 fixtures across APAC, which doubled against 2020. Also, the average duration for fixtures in 2021 increased to 0.75 years from 0.73 years in 2020. Regional national oil companies (NOCs) continue to drive demand across APAC. Some of them are driven by government mandate to boost offshore exploration and production to reduce import dependencies, while others look to boost exploration by offering acreage through licencing rounds. In 2021, the top 10 regional operators accounted for about 75% of the backlog added, while NOC’s amongst the top 10 operators together accounted for about 55% of the backlog addition.
Regional NOCs continue to drive demand
For 2021, Esgian recorded a total of 94 fixtures across APAC, which doubled against 2020. Also, the average duration for fixtures in 2021 increased to 0.75 years from 0.73 years in 2020. Regional national oil companies (NOCs) continue to drive demand across APAC. Some of them are driven by government mandate to boost offshore exploration and production to reduce import dependencies, while others look to boost exploration by offering acreage through licencing rounds. In 2021, the top 10 regional operators accounted for about 75% of the backlog added, while NOC’s amongst the top 10 operators together accounted for about 55% of the backlog addition.
