Offshore Drilling Rigs Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Offshore Drilling Rigs Market is segmented by Type (Jackups, Semisubmersibles, Drill Ships, and Other Types), Water Depth (Shallow Water, Deep, and Ultra-deepwater), and Geography (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa).

Market Snapshot

Offshore Drilling Rigs Market Bar Graph
Study Period: 2018- 2026
Base Year: 2020
Fastest Growing Market: Middle-East and Africa
Largest Market: North America
CAGR: >1 %
Offshore Drilling Rigs Market Top Comapnies

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Market Overview

The offshore drilling rigs market is expected to register a CAGR of more than 1% during the forecast period of 2021 – 2026. The COVID-19 pandemic has severely affected the market due to the decline in oil prices in 2020 and delays in oil and gas upstream projects in offshore areas. However, the recovery of crude oil prices after the scenario in 2020 is expected to make offshore drilling profitable. This, in turn, may aid in the growth of the market, especially in the new exploration done in different offshore regions across the world. In addition to this, factors such as improved viability of deepwater and ultra-deepwater projects are likely to drive the offshore drilling market during the forecast period. However, the volatility in crude oil is expected to remain a major restrain to the growth of the offshore drilling market during the forecast period.

  • The deepwater and ultra-deepwater segment is expected to witness significant development due to increasing technological innovation and the rising viability of such operations.
  • New markets, such as Gabon, Senegal, Guyana, Trinidad & Tobago, Egypt, and the Mexican side of the Gulf of Mexico, are actively promoting the development of offshore reserves, especially the deepwater and ultra-deepwater reserves. This, in turn, is expected to create significant opportunities for the operating companies in the near future.
  • Middle-East and Africa is expected to be one of the potential markets with the majority of the demand coming from Nigeria, Angola, and Egypt.

Scope of the Report

The offshore drilling rigs market report includes:

Drill Ships
Other Types
Water Depth
Shallow Water
Deep and Ultra-deepwater
North America
South America
Middle-East and Africa

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Key Market Trends

Deepwater and Ultra-deepwater Segment to Witness Significant Growth

  • From 2014 to 2019, global deepwater expenditure increased, and countries/regions, such as Brazil, the United States Gulf of Mexico (GoM), North Sea, Angola, and Nigeria, constitute for a large amount of this capital expenditure, respectively, with West Africa anticipated to have the greatest regional growth.
  • In the southern hemisphere, a new exploration permit was awarded in April 2019 by the Argentine government to the consortium formed by ExxonMobil and Qatar Petroleum for exploration in Malvinas Oeste Basin. 13 companies offered approximately USD 995 million for exploration licenses of areas within the Austral, Argentina Norte, and Malvinas Oeste basins. All three basins are offshore, combining a total tendered area of more than 200,000 sq. km. never explored before.
  • In 2019, Argentina’s neighboring country, Brazil, held its sixth successful oil and gas bid round in just over a year and awarded all four blocks in the prospective pre-salt area for BRL 6.82 billion. The latest investment and upcoming projects in deepwater are likely to drive the growth of the deepwater drilling market during the forecast period in the South American region.
  • Moreover, the recent waves of cost reductions and critical technological breakthroughs have enabled many oil and gas exploration and production companies to expand their portfolio of sustainable deepwater developments.
  • Therefore, with the increase in deepwater activities and the technology breakthrough, the deepwater and ultra-deepwater segment is expected to witness significant growth during the forecast period.
Offshore Drilling Rigs Market Share

Middle-East and Africa to Witness Significant Growth

  • Many countries in the Middle-East and Africa region have large-scale offshore reserves of oil and gas. The world’s largest gas field - the South Pars Gas Complex in the Persian Gulf or the new discoveries of oil and gas reserves in the eastern Mediterranean sea are all expected to aid the growth of the market.
  • The Angolan offshore acreage is among the most prospective plays in Africa and continues to draw high levels of investment. Drilling results are broadly positive, with exploration yielding several high-impact discoveries in recent years.
  • In January 2020, Eni started production at the Agogo-1 deepwater field and won exploration rights to Block 28 in the Namibe Basin, while Total, active in Angola for more than 60 years, was awarded Block 29.
  • On the flipside, with Angola’s most prospective acreage in the deepwater, ultra-deepwater, and pre-salt areas, exploration can be characterized as high-risk, high-reward. The bulk of drilling is expected to continue to target deepwater and pre-salt prospects, spearheaded by industry giants, such as Chevron, BP, Eni, Exxon Mobil, Statoil, and Total, along with national oil company Sonangol.
  • Nigeria holds the top position among the ten countries, with the largest remaining crude oil and condensate deepwater reserves. The majority of reserves are along the country's Niger River Delta and offshore in the Bight of Benin, the Gulf of Guinea, and the Bight of Bonny. As of now, exploration activities are mostly focused on the deep and ultra-deep offshore, although some onshore exploration is also taking place.
  • Production of oil in the country decreased, by 1.9%, to 33.6 million tonnes, in 2019 from 34.2 million ton, in 2018. The consumption of oil in the country decreased, by 1.7%, to 34.7 million ton, in 2019 from 35.3 million ton, in 2018. The decrease in production and consumption is expected to restrain the growth of the market.
  • Therefore, factors, such as upcoming offshore E&P activities, especially from the West African region, are expected to boost the number of offshore drilling rigs in the region in the coming years.
Offshore Drilling Rigs Market Growth By Region

Competitive Landscape

The offshore drilling rigs market is moderately fragmented. Some of the major offshore rig manufacturers include Keppel Corporation Limited, Samsung Heavy Industries Co. Ltd, Sembcorp Marine Ltd, Transocean Ltd, and Seadrill Ltd.

Recent Developments

  • Neptune Energy Norge extended Odfjell Drilling/CIMC Raffles’ contract for the semisubmersible. The rig will now drill an additional two wells, keeping it occupied through 2021. It will work in the area of Neptune’s 2020 Dugong oil discovery in the Norwegian North Sea. There is an option for Neptune to exercise a further eight wells under the current contract.
  • In January 2021, the US President Joe Biden temporarily halted the drilling on federal lands which leaves the vast majority of United States crude production untouched. It may act as a major blow for the prospects of the Gulf of Mexico’s already dwindling output.
  • In February 2021, Egypt has launched a bid round inviting potential companies for oil and natural gas exploration and exploitation in 24 blocks. The blocks are established in the Eastern Meditteranean.

Table of Contents


    1. 1.1 Scope of the Study

    2. 1.2 Market Definition

    3. 1.3 Study Assumptions




    1. 4.1 Introduction

    2. 4.2 Market Size and Demand Forecast in USD billion, till 2026

    3. 4.3 Historical Average Day Rates of Floaters and Jackup Rigs, till 2019

    4. 4.4 Major Offshore Upstream Projects

    5. 4.5 Recent Trends and Developments

    6. 4.6 Market Dynamics

      1. 4.6.1 Drivers

      2. 4.6.2 Restraints

    7. 4.7 Supply Chain Analysis

    8. 4.8 Porter's Five Forces Analysis

      1. 4.8.1 Bargaining Power of Suppliers

      2. 4.8.2 Bargaining Power of Consumers

      3. 4.8.3 Threat of New Entrants

      4. 4.8.4 Threat of Substitute Products and Services

      5. 4.8.5 Intensity of Competitive Rivalry


    1. 5.1 Type

      1. 5.1.1 Jackups

      2. 5.1.2 Semisubmersibles

      3. 5.1.3 Drill Ships

      4. 5.1.4 Other Types

    2. 5.2 Water Depth

      1. 5.2.1 Shallow Water

      2. 5.2.2 Deep and Ultra-deepwater

    3. 5.3 Geography

      1. 5.3.1 North America

      2. 5.3.2 Europe

      3. 5.3.3 Asia-Pacific

      4. 5.3.4 South America

      5. 5.3.5 Middle-East and Africa


    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Strategies Adopted by Leading Players

    3. 6.3 Market Share Analysis - Service Providers

    4. 6.4 Company Profiles

      1. 6.4.1 Offshore Rig Manufacturers

        1. Keppel Corporation Limited

        2. Samsung Heavy Industries Co. Ltd

        3. Sembcorp Marine Ltd

        4. Daewoo Shipbuilding & Marine Engineering Co. Ltd

        5. Hyundai Heavy Industries Co. Ltd

        6. Friede & Goldman Ltd

        7. Damen Shipyards Group

        8. Irving Shipbuilding Inc.

      2. 6.4.2 Offshore Drilling Contractors

        1. Transocean Ltd

        2. Seadrill Ltd

        3. ENSCO PLC

        4. Noble Drilling PLC

        5. Diamond Offshore Drilling Inc.

    5. *List Not Exhaustive

**Subject to Availability

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Frequently Asked Questions

The Offshore Drilling Rigs Market market is studied from 2018 - 2026.

The Offshore Drilling Rigs Market is growing at a CAGR of >1% over the next 5 years.

Middle-East and Africa is growing at the highest CAGR over 2021- 2026.

North America holds highest share in 2020.

Keppel Corporation Limited, Samsung Heavy Industries Co. Ltd, Sembcorp Marine Ltd, Transocean Ltd., Seadrill Ltd are the major companies operating in Offshore Drilling Rigs Market.

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