As a result of the analysis which were done by “Egypt Oil and Gas”, some of the market indicators showed and proved the existence of a crisis in the rigs’ market especially the onshore rigs. The aspects of the crisis began to appear in the current days and were represented in some joint-venture companies that held tenders for the renting rigs, however, none of the owners of these rigs have entered such bids especially the 1500hp and 2000hp rigs.
The indicators showed that North Bahariya Petroleum Co. (NORPETCO) was not able to rent to the EDC#1 rig because Apache acquires it in its fields for one year which is subjected to be renewed.
Hence, the solution of such crisis is in the hands of Tanmia Petroleum Company through its contract with the factory, which was established in Egypt to manufacture onshore rigs. As the company is on its track to buy ‘Mubarak 6’ rig, which will start drilling this month and will be operated by Sino Tharwa on behalf of Tanmia.
Moreover, the analysis shows that if decision makers did not act quickly, the prices of onshore rigs will rise by at least 30% of current prices. In addition, it is expected that rental rates for the 1500hp rigs will range from $16,500 to $18,500 per day.
As for the 2000hp rigs, they will exceed $20,000 per day. Thus, the rates are going to reach the levels before the economic crisis that rocked the world in the fourth quarter of 2008.