Old news, it was announced last month.
Just two more ships available and looking for a job, sounds familiar, look at all markets. Only things working are the vast government criminal enterprises acting like gods and kings, you wish a job or work, just feed the kitty and we will allow it.
Look at 2017 for the operators to start picking up idle rigs at a low day rate with 12 to 24 month contracts.
One or two rigs a month for all drillers, no big deal, but one or two a month across all the drillers, game on.
Day rates will not move until you see idle rigs going on long term contracts. Rates rise when available rigs are limited to those coming off existing contracts rolling over to new higher rates.
As far as when, look for oil production to start decreasing from existing wells, then you will see "tenders" coming to market and the game will be on, usually takes 6 months to 18 months to get things in high gear with rigs coming on line and cold stacked rigs start moving to fill lower rate tenders..
OPEC and Non-OPEC have a new unending source of pure energy for the World. HOT AIR bellowing out of the mouths of the World Government officials, employees and Greenies. The phrase "running on fumes" will correctly characterize the transporation endustry.
There may be only 13 Drill rigs working in the World by 2018 at the current pace "DD" that is "Driller Destruction".
245 and counting down one day at a time.
Frog, I am looking at a $.51 loss for 2017 assuming not future exits by the operators from contracted rigs.
I am really bearish on what is going on, every day another shoe drops and a few more drills are hosed by the operators who are living on marginally producing wells until they go dry, then what...most drillers will be out of business.
I have not looked at the deal going forward yet. The fleet report is due shortly and will wait for that.
I don't know what sort of assets will be paid to NE, but I hope they pay down debt with what cash to get.
Now they should be marketing the drillships, but maybe hold them off until the drillers are out of the slush box.