Ultra-Deepwater (UDW) rig newbuilding orders are set to continue, Dahlman Rose says.
The US investment bank forecast more rigs will be newly ordered on spec despite the recent plateau of UDW rates.
“Market participants continue to order new rigs on spec,” say Dahlman Rose's James Crandell and Doug Garber.
The analysts say total UDW rig orders came at 37 so far this year and are approaching last year’s total of 42.
“This trend will continue, even if UDW dayrates fail to move higher than their current levels,” they said.