Drilling contractors expect markets across the globe to continue improving this year as the outlook for the rig industry remains positive, with increased upstream investments leading to higher contracting activity across both floaters and jack-ups.

Offshore exploration and production spending is projected to rise by about 15% in 2023 with further growth forecasted in 2024 and 2025, which may potentially push dayrates above the $500,000-threshold.

“Drillship demand is anticipated to rise throughout 2023 and we believe that, as a result, dayrates will continue to trend upward, especially for the higher specification ultra-deepwater,” Transocean chief executive Jeremy Thigpen told investors in a recent conference call.