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Article: Rig prices soar as oil hits new highs: a boom in oil and gas exploration activity is pushing up the cost of drilling rigs.(ENERGY)
- Article from:
- MEED Middle East Economic Digest
- Article date:
- February 1, 2008
- Author:
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REGIONAL
The high oil prices have encouraged a surge in exploration that has put the market for upstream oil and gas services under intense pressure. In particular, the cost to hire or purchase a drilling rig is rocketing. Between 2002 and 2006, the cost of purchasing a new deepwater, semi-submersible rig almost doubled to $500m, and the daily rate to hire an offshore rig increased by 135-430 per cent, depending on location and drilling depth.
Day rates for the technologically advanced fifth and sixth-generation rigs, built in the past 10 years, Increased to more than $450,000 a day in 2006 from less than $120,000 a day at the start of 2002. The global ...