Fist(noun) the hand with the fingers doubled into the palm; the closed hand, especially as clinched tightly for the purpose of striking a blow. Fist(noun) the talons of a bird of prey. Fist(noun) the index mark [/], used to direct special attention to the passage which follows. Fist(verb) to strike with the fist.
A good used workover rig (single) including rig tank, rig pump, doghouse, and rig tongs can be had for around $1 Million. A good new work over rig (single) including all the aforementioned stuff is ~$3 Million. I don't know how much more a double or triple would be, but I'm guessing in that same ballpark. A new drilling rig is in the $10 Million range, although you can get used ones for far cheaper.
Profit comes from leasing these drill rigs at contracted day rates that exceed the company's cost of capital and operating costs. The offshore drilling companies are leveraged to long term price trends of oil. It is often stated that the break-even for deepwater drilling is oil over $70 a barrel.he reason it matters is because day rates and operating costs are vastly different. Day rates are typically $75,000 per day for jackups, and $400,000 or more a day for deepwater (rates vary widely, based on market conditions and rig availability).