[Perspective] The maddening offshore drilling market — a heartbreak for investors...

In March 2018, Norwegian shipowner Awilco Drilling placed an order at Keppel Offshore & Marine’s Singapore yard to build a Moss Maritime CS60 ECO MW semi-submersible drilling rig (Nordic Winter) at a bargain price of USD 425 million—far below the pre-oil-price-slump construction cost of USD 600–700 million. In March 2019, Awilco ordered a second rig of the same type (Nordic Spring) from Keppel. For Keppel, this was like rain after a long drought; for Awilco, it was indeed a floor-price acquisition—truly a win-win scenario fueled by mutual interest. However, in June of this year, just one day before a scheduled payment milestone (USD 31.875 million), Awilco notified Keppel that it would exercise its contractual right to terminate the construction contract for the Nordic Winter rig, citing Keppel’s alleged ‘breach of contract’. Under the contract terms, Awilco is entitled to a full refund of the USD 54.7 million in installments already paid to Keppel, plus accrued interest. Amidst the industry’s deep freeze and battered by both pandemic and low oil prices, survival—not pride—has become the sole imperative. Within increasingly constrained operational margins, conflicts over interests will inevitably intensify; the two remaining optional orders now seem as illusory as mirages. A decade ago, offshore rigs were the darlings of the industry; who could have imagined they would become nightmares ten years later? That golden era may never return... The service life of drilling rigs or drillships can span 30–40 years. The first oil price surge in the 1970s triggered the first wave of rig investment and construction; the second surge in the early 2000s spurred the second wave—exactly 30–40 years apart. Does the current oil price downturn signal the buildup toward a third surge? Will a third oil price surge inevitably trigger a third wave of rig investment and construction? While such an outcome may appear inevitable, it remains fraught with profound uncertainties. II. Market Conditions According to IHS data, offshore drilling rig utilization statistics between July 2016 and May 2020 are shown in the chart below. As of end-May 2019, there were 746 active rigs (including drillships, jack-ups, and semi-submersibles)—a historical peak of ~950. Of these, 456 rigs were under contract (historical peak: ~770), representing ~57% of the total fleet (historical peak: ~85%). Only 409 rigs were actively operating (historical peak: ~670), accounting for ~55% of the total fleet. Since the 2014 oil price collapse, the number of operating offshore rigs plummeted sharply, undergoing a four-year bottoming-out process. By 2018, the market had largely stabilized and begun a slow recovery. Benefiting from both oil price stabilization and the retirement of aging rigs, the number of operating rigs rebounded to around 450 in 2019, pushing overall rig utilization back above 60%. Yet in 2020, the ‘small boat of friendship’ capsized without warning—and the offshore drilling market’s descent into the abyss has begun anew…

The death toll from the Gabon shipwreck has risen to 26. What are the possible causes of the accident?

The vessel experienced a mechanical failure.

Borr Drilling Falls 11% After 5 Missing From Rig Sunk Off Gabon

Oct 26, 2026

Borr Drilling shares dropped 11% after its Prospector 5 rig sank off Gabon during drilling operations for BW Energy, leaving five workers missing. Search and rescue continues as an investigation into the stability incident is launched.

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Borr Drilling Falls 11% After 5 Missing From Rig Sunk Off Gabon

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