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    Gulf of Mexico market improving says broker

    News // April 29, 2010

    Broker Fearnley Offshore Supply says the US Gulf of Mexico market is showing signs of improvement.

    "Things are without a doubt starting to improve in the US Gulf of Mexico region," said the broker in its latest report on the market. "Good news for the OSV industry is an oil price around US$80-85 per barrel, news from Washington to opening up for drilling in new areas, and the US Gulf shelf rig market steadily gaining strength, up from 16 rigs last summer to 35 working jack-ups this month."

    "Shipowners and operators are experiencing a slow recovery in day rates/utilization and many believe the upwards trend is here to stay," said Fearnley. "The market has in general seen an increase of RFQs and the deepwater DP OSV market in particular are seeing a positive injection of activity. We also see vessels beginning to be brought out of lay-up."

    "Day rates for the standard GoM 180-200ft shelf boats, also popularly knows as the mud boats, are earning close to US$6,500 per day, while the newer generation shelf
    boat, typical 200ft DP class, is hovering around US$10,000 per day."

    "Moving in to deeper water we see rates jump to US$18-25,000 for larger 240-260ft DP2 PSVs and around US$30,000 per day for larger 280ft DP2 deepwater PSVs," said the company.

    "The first who can expect increased activity in the new, previously protected drilling areas, will be the seismic companies and the vessels supporting these seismic vessels and following this, hopefully, drilling campaigns will begin leading to increased activity for the US based OSV industry."


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