Diamond Offshore stacked two rigs and scrap another two

Diamond Offshore rigThe US drilling company Diamond Offshore stacked two rigs during the last quarter and plans to scrap another two in further month. The semi-submersible rig Ocean Endeavor and jackup rig Ocean Sceptre have been stacked to minimize operational costs, but keeping them in manner, allowing to be reactivated quickly when market recovers. Moreover, the company released plans to retire and scrap the rigs Ocean Quest and Ocean Star, both of which currently cold stacked. Diamond Offshore made the decision at a time when offshore drilling is in the doldrums due to high costs and low crude oil prices, which keep the market under pressure and force companies to reduce costs.

“Some of the larger diversified oilfield service providers have declared a bottom in activity and are suggesting that a recovery is imminent”, said the Chief Executive Officer of Diamond Offshore, Marc Edwards. “While this may be the case for certain onshore basins, it is not so for deepwater drilling”, added he.

The Houston-based offshore driller Diamond Offshore reported net loss of 589.9 million USD for second quarter of 2016. The company’s revenues for the reported period fell by 17.4% to 388.7 million USD.

Diamond Offshore is a deepwater drilling contractor, which is headquartered in Houston, Texas and has major offices in Australia, Brazil, Mexico, Scotland, Singapore and Norway. The company operates 33 drilling rigs including 24 semisubmersibles, 5 drillships, and 6 jackup rigs.