According to the chief executive of Dolphin Drilling, the outlook for the niche moored semi-submersible drilling market is improving for 2026 and beyond, though the sector may see further reductions in the number of available rigs due to their age and the high cost of maintenance.

Current Market and Fleet Overview

The Oslo-listed company estimates there are currently 14 such drilling rigs available on the international market, a figure that excludes rigs in China and the Caspian area which are not marketed internationally. Dolphin Drilling's own fleet consists of three rigs: the Paul B Lloyd Junior, which is operating in the UK; the Blackford Dolphin, operating in India; and the Borgland Dolphin, which is currently warm-stacked but has a contract in Spain scheduled to begin in the second half of 2026.

Market Challenges and Optimistic Outlook

The company's third-quarter report indicates that utilization continues to be a challenge for the sector. However, prospects are improving moving into 2026 and beyond. This anticipated increase is expected to be driven by the deepwater market. Dolphin expressed cautious optimism that increases will be seen throughout the entire sector, a view further supported by a decline in the supply of offshore moored rigs.

Potential Fleet Reductions and Decision Points

During an earnings call, the chief executive noted that large drilling companies Noble and Valaris own moored semisubs that might not fit into their future fleet strategies. Beyond that, the prevailing trend is that these units will likely continue operating until they reach a critical decision point: the Special Periodic Survey (SPS). This is the traditional juncture at which owners evaluate whether a rig is worth reactivating, considering if they can get another five years of service from it to justify a multi-million dollar investment. An example of this dynamic is Transocean's decision this year to scrap an old moored semisub, the Henry Goodrich.

Specific Rigs from Major Contractors

Noble's fleet includes three such rigs:

• The Noble Patriot, which is on a long-term contract in the UK.
• The Ocean Apex and Noble Endeavor, both of which are currently off contract.

Valaris has one moored semisub, the MS1, which recently came off contract in Australia.