Falling oil prices have hit Maersk Drilling hard

Maersk’s deep-sea oil exploration arm could risk having three expensive drilling vessels lying idle

Stephen Gadd

At the end of June, the contract for the drilling vessel ‘Maersk Viking’ will expire, at which point there is every likelihood the vessel will end up lying idle, along with her sister ships ‘Maersk Venturer’ and ‘Maersk Valiant’.

Maersk Drilling has four ships that are all highly technically-advanced and can operate at depths of up to 3.6 km.

READ ALSO: Maersk cuts over 100 jobs from its oil production

The three idle ships together have a combined new-build price of 9 billion kroner, Søfart reports.

Maybe the end in the US
Maersk Viking has been operating in the Mexican Gulf under contract to ExxonMobil since 2014. If the contract is not renewed, it means the end of Maersk’s drilling operations in the United Sates.

“We are working to market ‘Maersk Viking’ to potential customers, just as we do with the other vessels in our fleet that are idle on the market,” Jørn Madsen, the administrative director of Maersk Drilling, told Søfart.

“Even though oil companies are holding back when it comes to deep-water exploration projects, there are still projects under development.”

Ready to roll when the market picks up
Madsen points out all the vessels are ‘warm stacked’, which means they can be reactivated at short notice if a contract is signed.

However, the market segment for deep drilling is sluggish at present. When the first ship was ordered in 2011, oil prices were stable at between 100 and 200 dollars per barrel. At the moment, the price is just over 50 dollars per barrel.

TOP STORIES

  • Bestselling author of ‘The Year of Living Danishly’ Helen Russell on why she moved back to the UK after 12 years

    Bestselling author of ‘The Year of Living Danishly’ Helen Russell on why she moved back to the UK after 12 years

    After more than a decade living in Denmark, Russell shares why she made the move, how she’s coping, what she already misses, and the exciting new projects she’s working on. “It’s been a very tough decision. I love Denmark, and it will always hold a special place in my heart,” she says.

  • Denmark launches first AI supercomputer

    Denmark launches first AI supercomputer

    The new Gefion AI supercomputer is one of the world’s fastest and will accelerate research and provide new opportunities in Danish academia and industry.

  • Navigating big love, big moves and big feelings

    Navigating big love, big moves and big feelings

    Experts believe it takes seven years to move into a new culture, according to leading Danish psychologist Jette Simon and therapist Vibeke Hartkorn. For expat couples, the challenges of starting a new life together in Denmark can put pressure on relationships, but emotions-focused therapy can help.

  • More and more Danes are working after retirement age

    More and more Danes are working after retirement age

    Politicians debate a lot these days about when you can retire. The reality shows that an increasing number of Danes like to work, even if they can withdraw from the labor market. Financial incentives help.

  • Environmental activist fears death in prison if extradited to Japan

    Environmental activist fears death in prison if extradited to Japan

    Canadian-born environmental activist Paul Watson has been in prison in Greenland for almost 100 days awaiting an extradition decision for a 14-year-old offence against a Japanese whaling vessel that he calls a “minor misdemeanor”. The 73-year-old had previously passed through Ireland, Switzerland, Monaco, France and the USA without trouble, before Greenlandic police arrested him in July.

  • Denmark too slow to ease recruitment rules for non-EU service workers, say industry associations

    Denmark too slow to ease recruitment rules for non-EU service workers, say industry associations

    When the Danish government in January presented the first of its schemes to make it easier to recruit foreign labour from outside the EU, it was hailed by the healthcare and service sectors as a timely and important policy shift. But while healthcare changes have been forthcoming, the service sector is still struggling, say the directors of the industry association Dansk Industri and one of the country’s largest private employers ISS.

Connect club

Connect Club is your gateway to a vibrant programme of events and an international community in Denmark.

Sign up here

Career

  • Come and join us at Citizens Days!

    Come and join us at Citizens Days!

    On Friday 27 and Saturday 28 of September, The Copenhagen Post will be at International Citizen Days in Øksnehallen on Vesterbro, Copenhagen. Admission is free and thousands of internationals are expected to attend

  • Diversifying the Nordics: How a Nigerian economist became a beacon for inclusivity in Scandinavia

    Diversifying the Nordics: How a Nigerian economist became a beacon for inclusivity in Scandinavia

    Chisom Udeze, the founder of Diversify – a global organization that works at the intersection of inclusion, democracy, freedom, climate sustainability, justice, and belonging – shares how struggling to find a community in Norway motivated her to build a Nordic-wide professional network. We also hear from Dr. Poornima Luthra, Associate Professor at CBS, about how to address bias in the workplace.

  • Lolland Municipality launches support package for accompanying spouses

    Lolland Municipality launches support package for accompanying spouses

    Lolland Municipality, home to Denmark’s largest infrastructure project – the Fehmarnbelt tunnel connection to Germany – has launched a new jobseeker support package for the accompanying partners of international employees in the area. The job-to-partner package offers free tailored sessions on finding a job and starting a personal business.

Want to advertise your job with CPH Post?

Contact us

Jobs