The offshore drilling industry is entering a period of vigorous growth as operators worldwide accelerate exploration and production to meet rising energy demand, according to The Business Research Company.
Valued at US$33.53bn in 2024, the sector is projected to climb to US$36.28bn in 2025. This reflects a compound annual growth rate of 8.2%.
The expansion follows a decade shaped by strategic discoveries of deepwater reserves, improvements in offshore infrastructure, and increasing global energy consumption. The depletion of easily accessible onshore resources and the availability of specialised offshore expertise have further reinforced activity across major basins.
Looking ahead, the offshore drilling market is forecast to reach US$49.67bn by 2029, maintaining the same growth trajectory of 8.2%.
This forward momentum is driven by renewed investment aimed at strengthening energy security, securing supply chains, and expanding access to capital. Governments and operators alike are also responding to evolving climate regulations and rising expectations around safety, prompting upgrades to equipment and operational standards.
Technological transformation is set to become a defining feature of the forecast period. Operators are expected to increase the use of digital tools, integrate drilling operations into hybrid renewable energy systems, and push further into ultra deepwater territories. Advances in seismic imaging and the adoption of digital twin technology will play a central role in improving accuracy, reducing risk, and optimising asset performance.
A primary force behind the market’s expansion is the steady rise in global consumption of oil and natural gas. These fuels remain vital to heating, power generation, and transport, making them central to energy systems around the world. Economic growth, increasing populations, and the continued shift toward cleaner burning fuels in power and transport sectors are amplifying demand.
Offshore drilling offers the ability to tap large reserves beneath the seabed, thereby ensuring continued supply. Data from the United States Energy Information Administration illustrates this trend. By the end of 2022, proven US crude oil and lease condensate reserves rose by 9% to reach 48.3 billion barrels. Natural gas reserves increased by 10%, climbing to 691 trillion cubic feet. Such figures highlight the sustained appetite for exploration and the vital role offshore assets will continue to play.
Across Europe, leading operators are pursuing competitive advantage through robotics and artificial intelligence. A notable example emerged in 2024 when Schlumberger and Equinor achieved a milestone in autonomous drilling on the Peregrino C platform. Using cloud based applications and AI driven planning tools, the partners succeeded in autonomously drilling 99 per cent of a 2.6 km section. The project demonstrated not only improved efficiency and lower operational costs but also meaningful reductions in carbon emissions.
Asia Pacific remained the world’s largest offshore drilling region in 2024, followed by Western and Eastern Europe, North America, South America, the Middle East, and Africa.
Ocean services provider DeepOcean has been awarded a contract by Equinor to provide various subsea construction and installation activities as part of the Snorre Export and Import Gas Project (SNEIG) for offshore execution in 2026
The SNEIG project is part of the broader Snorre Expansion Project, which aims to extend the production life of the Snorre oil and gas field – originally discovered in 1979 and operational since 1992 – beyond 2040. The Snorre field is located in the Tampen area of the northern North Sea, in water depths of 300–350 meters.
DeepOcean’s scope of work includes installation of a subsea safety isolation valve (SSIV), a subsea umbilical, and tie-in to the existing pipeline using connectors and associated tooling from the Pipeline Repair and Subsea Intervention (PRSI) pool.
DeepOcean will also provide preparatory subsea construction activities include isolation pig tracking, pipeline coating removal and cutting operations. Suitable crossings for the new umbilical will also be prepared and installed at the field before various mechanical completion and commissioning activities are performed.
“This is a complex subsea project that underlines Equinor’s dedication to responsible resource utilisation through life-of-field extensions. Through our in-depth knowledge of the specialised tooling from the PRSI pool, matched with our highly capable construction vessel fleet, I am confident that our skilled project team will ensure a safe and successful project execution in close cooperation with Equinor,” says Olaf A. Hansen, managing director of DeepOcean’s European operation
The award also includes the provision of onshore engineering, procurement and project management services. DeepOcean will manage the project out of its office in Haugesund, Norway.
Offshore operations will be executed during the summer season of 2026 using a subsea construction vessel from DeepOcean’s chartered fleet.
Last week the industry’s finest gathered in Aberdeen to see who will be crowned this year’s well intervention champions!
The annual celebration saw a panel of expert judges acknowledge the very best in global well intervention excellence.
This year’s winners included:
A huge congratulations to all the winners and nominees, and a big thank you to everybody who attended! We look forward to another year of seeing this industry push boundaries and drive the wider offshore community into the future.
Archer Limited will be delivering a P&A unit, which is much lighter than usual, for the Fulmar platform in North Sea.
The unit will be deployed as part of an additional contract linked to a five-year agreement with Neo Next Energy.
While the P&A unit will be replacing one of Archer’s modular drilling rigs, the expanded scope of the new contract will cover platform drilling, facilities engineering, coil tubing, wireline services, and downhole well service technologies across Neo Next’s offshore portfolio. This portfolio includes integrated drilling and well services for late-life operations and P&A activities for approximately 130 wells, requiring safe and cost-effective project delivery.
Alexander Olsson, EVP Platform Operations Archer, said, “We are very pleased with this contract award as this anchors our strategic focus on late life and P&A operations. This amendment reflects our ability to grow long-term client relationships by delivering value through operational excellence and innovative solutions. Archer’s capabilities to offer lighter, leaner and more cost-efficient P&A units, is a competitive advantage as the demand for cost efficient P&A programmes grow. We are proud to extend our collaboration with NEO NEXT in this area.”
Halliburton has introduced LOGIX unit vitality, expanding its LOGIX automation and remote operations suite. The system provides real-time monitoring of cementing equipment, streamlines preparation for upcoming jobs, and offers direct insight into equipment performance and operation.
Daniel Casale, vice president of Cementing at Halliburton, said, "LOGIX unit vitality delivers unprecedented visibility into equipment health and operator performance. Artificial intelligence (AI) and real-time data transform equipment maintenance from reactive to predictive to help customers gain greater insight into their operations and reduce non-productive time."
The system links key cement unit components to intelligent controllers, tracking more than 400 real-time parameters to maintain optimal performance. Data is securely transmitted to the cloud, where machine learning models process it immediately, providing continuous insights into equipment health, operational readiness, operator performance, and predictive maintenance recommendations.
By combining AI with human expertise, LOGIX unit vitality enables smarter operations, faster responses, and more confident execution. The system supports Halliburton's land-based Elite and Elite Prime cement units, with offshore deployment planned for 2026.
Digital technology is central to Halliburton’s operations, shaping problem-solving and enhancing value for customers. The LOGIX automation and remote operations family delivers analytics and visualisation services that improve reliability, efficiency, and operational consistency, enabling safer operations, smarter decision-making, and lower total cost of ownership.
The energy giant has awarded DOF Group a three-year contract, with optional extensions, for the provision of subsea services in the North Sea.
Under the agreement, DOF will support bp with subsea construction, inspection, repair and maintenance operations. Work is expected to commence in Q1 2026.
Mons S. Aase, DOF Group CEO, said, “We are proud to be awarded a contract with bp for subsea services in the North Sea. This agreement represents a significant step forward for DOF and our UK subsea organisation. We are committed to delivering best-in-class services, with an uncompromising focus on safety and operational performance in the years ahead.”
Preparations are already underway, with DOF providing a comprehensive scope including project management, engineering, logistics, and offshore execution as part of the service.
Emerson, in collaboration with Interwell, a global leader in well intervention and integrity solutions, has announced the launch of the Adaptive Gas Lift System (AGLS), the world’s first retrievable electric gas lift system designed to comply with internationally recognised safety and performance standards
The AGLS enables continuous optimisation of oil production without requiring costly and intrusive well interventions. Its retrievable design reduces downtime while improving both safety and sustainability in gas lift operations.
Conventional gas lift systems are typically most effective in the early stages of a well’s life, when tubing pressure is high. As reservoir conditions change, drawdown efficiency drops and oil output declines, often resulting in over or under-injection of lift gas. Traditional injection pressure operated (IPO) valves must reduce casing pressure to close, which restricts injection depth and production capacity.
Controlling casing pressure and temperature-related uncertainties in valve behaviour can also cause multi-pointing, where gas is injected at unintended depths, creating inefficiencies and production losses. To address these challenges, operators often resort to costly interventions to alter valve port sizes or injection depths.
The Adaptive Gas Lift System revolutionises gas lift operations by offering real-time remote control of valve port sizes, gas injection rates, injection depths and drawdown, all without halting production. Since valve closure does not depend on reducing casing pressure, operators can achieve deeper injection, resulting in improved lifting efficiency throughout the well’s lifecycle.
With continuous data-based online adjustments, the AGLS removes the need for traditional intervention-based modifications, maximising uptime, production and safety while shortening project payback periods. Its unique retrievable design allows complete valve assembly replacements using standard wireline techniques, avoiding the need for costly workovers.
The system is powered and managed through Emerson’s Roxar Integrated Downhole Network, a permanent monitoring and control platform that delivers real-time data on pressure, temperature and flow for enhanced reservoir management. It also incorporates Interwell’s proven Side Pocket Mandrels and barrier-rated Gas Lift Valve.
AGLS has been designed and qualified to meet the American Petroleum Institute’s API 19G1 (V1), 19G2 (V0), and the Advanced Well Equipment Standards Group’s AWES 3362-36 standards.
By reducing the frequency of well interventions, which typically require heavy equipment mobilisation, energy use and associated emissions, the system lowers the carbon footprint of gas lift operations. Its enhanced production efficiency further decreases CO2 emissions per barrel of oil, supporting more sustainable energy production.
“We designed the AGLS to meet the most rigorous industry standards,” said Jan Inge Ellingsen, vice president and general manager for Roxar products at Emerson’s measurement solutions business. “This innovative technology will help unlock the full potential of assets in the field while eliminating the need for extensive interventions, improving safety, and supporting the transition toward net-zero energy production.”
“The oil and gas industry has long required a more dynamic and resilient approach to electric gas lift,” said Thormod Langballe, chief executive officer of Interwell. “Combining Emerson’s industry-leading digital automation expertise with Interwell’s specialised gas lift technology and know-how, we have developed a robust, real-time controllable gas lift solution that tackles these challenges head-on.”
Odfjell Technology (UK) Ltd has announced a two-year extension of its Master Service Agreement with Serica Energy (UK) Limited.
The renewed agreement underscores the companies’ strong partnership and Odfjell Technology’s ongoing commitment to delivering reliable, high-quality campaign support and maintenance services within the energy industry.
Originally awarded in November 2018, the Serica contract covers the provision of storage, preservation, maintenance, and drilling services. It has since been sustained through several rolling extensions. Under this agreement, Odfjell Technology supplies skilled personnel to support intervention and maintenance operations on the Bruce platform, along with engineering expertise through targeted surveys that contribute to Life of Field activities. The latest extension secures an additional two years of backlog for Odfjell Technology, reinforcing its continued support for Serica’s operational objectives.
John Moffat, Senior Vice President of Operations & P&A UK, commented, “This extension reflects the trust Serica places in Odfjell Technology and the value our teams deliver across intervention, maintenance, and drilling support. We are proud to continue this long-standing partnership and strengthen our position for future campaign readiness, reinforcing our commitment to reliable, flexible service delivery.”
With more than 50 years of experience, Odfjell Technology is an integrated provider of offshore operations, well services technology, and engineering solutions. The company is dedicated to improving safety, efficiency, and sustainability across all operations while reducing time, cost, and emissions for clients. Operating in over 30 countries, Odfjell Technology employs more than 2,400 skilled professionals worldwide.
The Norwegian-based offshore and subsea services provider DOF Group ASA has announced contract extensions for three high-specification pipelay support vessels (PLSVs) owned via its joint venture with TechnipFMC (50:50).
The vessels are engaged by Petrobras in Brazil and are now set to bolster the company’s offshore presence well into the next decade.
The PLSVs Skandi Vitória and Skandi Niterói have had their existing contracts, originally due to end in Q4 2025, extended through to Q1 2027. Their subsequent three-year contracts, announced in June 2024, will commence once the extended period concludes. Meanwhile, Skandi Açu has seen its current charter, set to finish in Q3 2026, likewise extended to Q1 2027, ahead of a separate three-year deal announced in August 2024.
DOF says these amendments add approximately US$100mn to the company’s firm backlog, while all other terms of the previously disclosed three-year agreements remain unchanged. “We are happy to extend the firm backlog of these three high-end vessels into 2030,” said Mons Aase, CEO of DOF Group ASA. “Together with other contracts previously announced, DOF now has 17 vessels in Brazil with firm backlog extending towards and into the next decade.”
The announcement underscores the firm’s commitment to its offshore services footprint in Brazil, securing long-term engagements for its pipelay assets in a key global market.
Oceaneering International, Inc. has announced that its Offshore Projects Group (OPG) has received a contract from bp Exploration (Caspian Sea) Ltd. to provide riserless light well intervention (RLWI) services at the Azeri-Chirag-Deepwater Gunashli (ACG) oilfield in the Caspian Sea
As part of the agreement, Oceaneering will deliver RLWI services for a multi-well mechanical wireline intervention campaign using one of its deepwater systems, which will be integrated onto a subsea construction vessel provided by the client. The project scope also includes management, engineering, and systems integration services to be carried out by both local and international Oceaneering teams.
Engineering and pre-mobilisation activities are already underway, with field operations expected to begin in the fourth quarter of 2025.
Chris Dyer, Senior Vice President of OPG, said, “Oceaneering has successfully provided RLWI solutions to help restore and improve production from existing wells in other deepwater regions of the world. We appreciate bp’s continued trust in our ability to safely provide reliable and cost-effective deepwater intervention solutions, particularly in support of the critical production in the Deepwater Gunashli area of the ACG field.”
Halliburton has introduced the StreamStar wired drill pipe interface system, a pioneering solution that provides real-time, high-speed data and continuous downhole power.
Designed to improve orchestrated closed-loop automation, the system enables faster and more accurate decision-making.
By reducing reliance on downhole generators and lithium batteries, StreamStar allows a compact bottomhole assembly that positions sensors closer to the bit for enhanced measurement reliability.
It also enables instant, two-way communication between the logging-while-drilling system and rotary steerable system, cutting well construction time.
The StreamStar system is part of Halliburton’s iStar intelligent drilling and logging platform, integrating seamlessly with the LOGIX automation and remote operations suite.
This combination allows instant execution of commands, closed-loop control, and real-time optimisation of drilling operations.
As the industry moves toward smarter, automated drilling, StreamStar delivers enhanced precision, operational efficiency, and confidence at every stage of well construction.
Aquaterra Energy, a leading provider of offshore engineering solutions, has announced the appointment of Matt Marcantonio as its new Head of Engineering, marking an important milestone in the company’s ongoing growth and dedication to advancing offshore technologies.
With more than 18 years of experience in the offshore energy sector, Marcantonio is a well-known figure in the industry. In his new role, he will oversee Aquaterra Energy’s global engineering function, driving innovation, enhancing product development, and strengthening the company’s technical leadership across Well Access and Offshore Developments, including well intervention, late-life abandonment operations, and carbon capture and storage (CCS).
Marcantonio joins Aquaterra Energy after nearly 17 years with Claxton Engineering and 18 years within the Acteon Group, bringing with him substantial expertise in riser systems, bespoke tooling, and complex well abandonment projects. He also brings experience in platform design gained during his time with UWG and 2H. With a strong history of leading multidisciplinary engineering teams to deliver innovative offshore solutions, Marcantonio’s appointment will help advance Aquaterra’s strategic focus on expanding its engineering capabilities and accelerating the development of proprietary technologies such as the Recoverable Abandonment Frame (RAF), the AQC systems suite, and the Sea Swift platform.
George Morrison, CEO at Aquaterra Energy, commented, “Hiring a talent like Matt underscores our ambition to remain at the forefront of offshore energy innovation while addressing our clients’ offshore challenges. His combination of deep technical knowledge, product development experience and leadership capability will be instrumental as we expand globally and continue developing technologies that support the energy transition and deliver value across the full well lifecycle.”
Alongside enhancing Aquaterra’s intellectual property portfolio and promoting operational excellence across global projects, Marcantonio will also focus on mentoring the company’s emerging engineering talent, helping to strengthen skills within Aquaterra and the wider offshore industry.
Matt Marcantonio, Head of Engineering, added, “I’ve always admired Aquaterra Energy’s reputation for innovation and engineering excellence, so I’m delighted to be joining such a talented and ambitious team. This is a company that delivers practical, field-ready solutions to solve some of the offshore industry’s biggest challenges – from cost-effective abandonment to enabling the future of CCS. What excites me most is the chance to support the next generation of engineers, sharing experience and building confidence in a sector that urgently needs new talent. Together, we have the chance to strengthen Aquaterra’s position as a leader in offshore innovation and make a lasting impact across the energy industry.”
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