Happy New Year from Zenith!
Zenith would like to take this opportunity to wish all clients, suppliers and contractors a Happy New Year and wish you all the best for 2017! After a turbulent 18 months in the oil industry as a whole, Zenith finished 2016 on a high having successfully completed two well management projects throughout the year, both being ‘firsts’ for the company. Both projects were delivered on time and on budget with zero HSE accident or incidents showcasing our ability to deliver the correct technical and commercial solution for our clients. Click the links below for more information.
Click here - Whisby 6 Well Project
Click here - Ombrina Mare Development
Zenith secures ISO 14001:2015
Zenith is pleased to announce our Environmental Management System has now been accredited to the new ISO 14001:2015 standards. Zenith was the first well management company to secure the new ISO 14001:2015 accreditation.
Zenith UKCS Rig Market Brief
The UKCS rig market has seen a drastic reduction in rig utilisation due to market demand and oil price. Rigs coming off contract have been unable to secure additional work due to weak demand and rigs have been stacked around the UK.
The offshore rig market is potentially in its worst slump since the 1980’s with worldwide rig utilisation falling by around 20%. Day rates have followed and new fixtures, contract extensions and rate adjustments have fallen by as much as 50%.
In the UK, many units are classed as “cold stacked” while some have been kept “warm stacked” in the light of market recovery. Some units may ultimately be scrapped, following in the footsteps of the Transocean John Shaw leading to a reduction in the number of units available for work in the UKCS.
Semi rigs on contracts secured prior to the downturn are at high rates (ranging from $330k per day to over $400k) however there have been recent fixes around $100k per day. Jack Up rates have been quoted at $60-75k per day thus giving a true indication of where the market currently sits.
The result is a large number of idle rigs in 2017, however, as Operators requirements and Drilling Contractors plans firm up, the rig market is going through a highly uncertain period. With cold stacked units not coming out for short term contracts, it will not take much to take up the slack and potentially cause an increase in rig rates throughout the year.
To date, all of Zenith’s project management contracts have been delivered within the agreed AFE and with zero LTI’s proving our process works.
What’s new for 2017…
Zenith has successfully secured two further well management contracts, giving the company a solid order book moving into the year ahead.
If you think we can help you with your upcoming well project, whether at the conception or decommissioning stage, then please get in touch.
01224 460 100 / firstname.lastname@example.org / zenith-energy.co.uk