Drilling day rates and prospects for rig companies continue to strengthen and improve, as oil companies pile up exploration wells to match a recent focus on production-well drilling.

One by one, rig contractors continue to clear the hurdles once seen curbing their momentous rise into “money machines”, as Seadrill’s Norwegian owner, John Fredriksen, once called them.

Delays, cost-overruns and blown oil-company contracts have yet to kick in ahead of the peak of rig-deliveries in 2010, judging by a Scorpion Offshore message to shareholders at the weekend.

“Worldwide jack-up and floater demand and dayrates are strong and strengthening,” a statement from the company said. It said drilling contract durations were also increasing, as oil companies race to capitalize on oil prices still near the $100 dollar a barrel mark.

Scorpion it was “encouraged by the level of customer inquiries” and the prospects for long-term contract awards for its unbuilt premium jack-ups. The company said the first four of its rigs have been nearly on time but on-budget. Scorpion’s order book shows $1.8 billion in backlog, or 2.5 times the company’s current market capitalization.

Oil industry analysts still see pressures on yards and rig-company-sent yard overseers for complete the world’s remaining newbuilds in good order. Meanwhile, the price of jack-up in the North Sea hovers at an average $149,000, judging by recent contract awards. For comparison, rates for semi-submersibles offshore Brazil start at $340,000 to $420,000 a day, but have ranged higher.

Semi’s in the North Sea begin at $430,000 and range up to nearly double that.

Tags: Scorpion Offshore