|dc.description.abstract||The thesis examines the lay-up decision in the North Sea offshore rig market from 2010 through
march 2017. Using empirical analysis, we have specified a logistic regression model to
investigate how rig characteristics, firm size and market variables affect the decision to both
cold- and ready-stack a jackup or a semi-submersible rig.
We find that that younger jackups with deep water depth owned by companies with multiple
rigs in the North Sea, are less likely to be laid up. In a period with varying market conditions,
a higher value of the rig characteristics variable deck load, quarters capacity and blow out
preventer (BOP), as well as the specification severe environment, increase the probability of
laying up a jackup.
For semi-submersibles, we find that younger rigs with a higher value of max water depth and
quarters capacity, equipped with self-propulsion, DP-3 system and classified for severe
environment, were less likely to be laid up. While a higher value of variable deck load increased
the likelihood of cold-stacking a semi-submersible.
The regression results show that a higher day rate and expectations for a higher future oil price
strongly decrease the likelihood for both jackups and semi-submersibles being laid up.
The thesis supplements the existing literature of the offshore rig market. To our knowledge, no
economical investigation regarding the lay-up decision have been carried out on the North Sea
offshore rig market. This thesis therefore provides a basis for further research of this market.
We hope the findings will be of interest for drilling operators when deciding which rig to send
into lay-up. In addition, the findings may be of interest for brokers and banks when evaluating