Offshore oil contractor Borr Drilling Ltd. (NYSE:BORR) expects almost a third of the world’s fleet of shallow-water rigs to be retired in the coming years because of their age, leading to higher daily leasing rates.
Saudi Aramco is gearing up to drill its first deepwater exploration well in the Saudi sector of the Red Sea before the end of this year. This body of water is more than 2,000m deep in parts of the Saudi sector, and it has salt sequences up to 2,100m thick.
Broker Evolution Securities believes that a downturn for oil service companies is inevitable, but it will be short and sharp, and that recovery is likely to be equally rapid and certainly apparent in 12 months.
