Layup in layman term means “parking” for ship / rigs when it is not being put under production. As oil price fluctuates, drilling contracts could get terminated by oil & gas company due to diminishing profit margin. Hence, there will be a lot of drill ship / rig that are not producing and being parked around different drilling points. However, any drill ship / rig requires maintenance; that is when wear & tear, manning costs, fuel & insurance costs kick in even though the drill ship / rig is not being put into production so it is important to optimize the costs associated to this asset. Company needs to preserve their financial strength to brave through hard time and also to carry out overdue maintenance / upgrades too. So when oil price recovers, the asset is ready to be put in production in a more efficient manner.