S&P: Offshore rig rates stand low

Standard & Poor’s credit rating agency feels the rates for ultra-deepwater rigs will still stand low for the next two years. Despite the increase in floaters, S&P doesn’t see an increase over the “magic” 85% utilization rate, historically the line which leads to a significant increase in rig dayrates. In 2019 new contracts on ultra-deepwater rigs will be in the $200,000 to $225,000 per day range.