Mobile Offshore Drilling Unit Market Size, Share, and Industry Analysis By Type (Drillship, Jack-up, and Semi-submersible), By Depth (Shallow, Deep, and Ultra-Deep), and Regional Forecast till 2032

The global mobile offshore drilling unit market is expanding owing to the growing need for oil and gas exploration and production in offshore areas, the depletion of onshore oil and gas reserves, and the identification of new offshore oil and gas fields. These units comprise drill ships, semi-submersibles, and jack-up rigs. They are vital for reaching deep-water reserves and are increasingly essential assets for energy companies looking to broaden their offshore operations.

• In November 2023, Advanced Energy Systems (ADES), a Saudi oil and gas drilling company, finalized a long-term agreement to jack up a rig with Pertamina Drilling Services Indonesia. This deal represents ADES's first foray into the Indonesian drilling market, encompassing a three-year firm period and a two-year option for the 2008-built Emerald Driller. ADES manages 87 rigs in seven countries within the Middle East & North Africa (MENA) region and India, including 46 offshore jackups, two jackup barges, one mobile offshore production unit, and 36 onshore units.

Mobile Offshore Drilling Unit Market Driver

Technological Progress to Drive the Adoption of Mobile Offshore Drilling Units (MODUs) in the Offshore Industry

The capabilities of MODUs have been significantly improved by advancements in drilling technologies, making them more efficient, safer, and able to work in challenging offshore environments. For instance, the advancement of dual-gradient drilling systems has empowered MODUs to drill in deeper waters and high-pressure, high-temperature (HPHT) conditions. Additionally, incorporating digitalization and automation technologies, such as real-time data monitoring, predictive maintenance, and remote operations, has further enhanced MODU performance and decreased operational costs.

• In April 2024, China started operating its deepest mobile oil rig in the northern part of the South China Sea to extract marginal resources as it focuses more on energy security and technological self-reliance. The domestically produced offshore rig is situated in the Enping oilfield, approximately 200km (124 miles) southwest of Shenzhen city. Developed by the state-owned China National Offshore Oil Corporation (CNOOC), the rig has a drilling capacity of 9,085 meters, with 8,689 meters being horizontal, marking it as the deepest and longest drill ever conducted by China.

Mobile Offshore Drilling Unit Market Restraint

Rising Environmental Concerns May Hamper Industry Expansion

Offshore drilling carries potential environmental risks, including oil spills, disturbance of marine habitats, and emissions of greenhouse gases. The catastrophic Deepwater Horizon oil spill in 2010, which resulted in the release of around 4.9 million barrels of oil into the Gulf of Mexico, brought attention to the severe impacts of offshore drilling accidents. In reaction to this, governments and regulatory bodies have implemented stricter rules for offshore drilling, requiring improved safety measures, environmental impact assessments, and liability provisions. These regulatory obstacles can raise operational expenses and cause project delays, hindering the growth of the MODU market.

Mobile Offshore Drilling Unit Market Opportunity

Emergence of New Offshore Drilling Opportunities

Emerging economies such as China, India, and Southeast Asian nations are driving the increasing energy demand, providing significant growth prospects for the MODU market. As these countries aim to expand their offshore oil and gas exploration and production activities, the need for MODUs is anticipated to increase.

The Global Wind Energy Council (GWEC) forecasts that the global offshore wind market will achieve a cumulative capacity of 234 GW by 2030, offering a substantial opportunity for MODU players to expand their offerings and enter the growing renewable energy sector in these emerging economies.

Segmentation

By Type	By Depth	By Geography
Drillship Jack-up Semi-submersible	Shallow Deep Ultra-Deep	North America (U.S. and Canada) Europe (U.K., Germany, France, Spain, Italy, Russia, and the Rest of Europe) Asia Pacific (Japan, China, India, Australia, Southeast Asia, Australia, and the Rest of Asia Pacific) Latin America (Brazil, Mexico, and the Rest of Latin America) Middle East & Africa (GCC, South Africa, Nigeria, and Rest of the Middle East & Africa)

Key Insights

The report covers the following key insights:

• Recent Advancements in Mobile Offshore Drilling Unit


• Key Industry Trends


• Regulatory Landscape for Mobile Offshore Drilling Unit


• Key Industry Developments (Mergers, Acquisitions, and Partnerships)


• Impact of COVID-19 on the Market

Analysis by Type

Based on type, the market is divided into drillship, jack-up, and semi-submersible.

Jack-up rigs are commonly utilized MODUs as they can function in shallow water. Semi-submersible rigs are employed in deeper waters, and drillships, the most costly type of MODU, are used in the deepest waters.

Analysis by Depth

Based on depth, the market is subdivided into shallow, deep, and ultra-deep.

Drilling operations in shallow water are generally simpler and more cost-effective than deep water and ultra-deepwater drilling. The Persian Gulf region, particularly the Middle East, has been a key center for shallow water drilling due to its abundant oil and gas reserves. Advancements in drilling technology, including developing high-pressure, high-temperature (HPHT) drilling systems and utilizing advanced subsea equipment, have made ultra-deepwater drilling more practical and economically feasible. Additionally, identifying significant ultra-deepwater reserves in areas such as Brazil's pre-salt basins and the Gulf of Mexico is propelling the segment growth.

Regional Analysis

Based on region, the market has been studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

The U.S. and Canada make North America the primary market for MODUs as they are major oil and gas-producing countries.

• Exxon Mobil is looking to write down approximately USD 2.5 billion of problematic California properties to cease offshore oil production in the state after fifty years, but completely divesting from these assets may be a lengthy process. Sable Offshore, established in 2020, struck a deal over a year ago to acquire Exxon's Santa Ynez oil and gas operation off the shores of Santa Barbara for USD 643 million.

The offshore areas surrounding Europe may contain oil and gas reserves. Europe has historically obtained a significant amount of its oil and gas from regions such as the North Sea, Norwegian Sea, and Barents Sea. The demand for Mobile Offshore Drilling Units (MODUs) in these areas is influenced by substantial offshore resources.

The Asia Pacific region is home to China and India, two of the world's most populous countries experiencing rapid economic growth and urbanization. Consequently, there is a growing demand for energy, particularly oil and gas. In response to this increasing demand, countries in the region are actively exploring and utilizing their offshore hydrocarbon deposits, driving the market for MODUs.

Latin America and the Middle East & Africa are experiencing an increasing demand for MODUs due to rising exploration and production activities in these regions.

Key Players Covered

The global mobile offshore drilling unit market is fragmented, with many group and standalone providers.

The report includes the profiles of the following key players:

• Wartsila (Finland)


• Transocean Ltd. (Switzerland)


• HD Hyundai Heavy Industries (South Korea)


• Seadrill Ltd (Bermuda)


• Equinor (Norway)


• Sembcorb Marine Ltd (Singapore)  


• Daewoo Shipbuilding and Marine Engineering (South Korea)


• Friede & Goldman Ltd (U.S.)


• Damen Shipyards Group (Netherlands)


• Yantai CIMC Raffles Offshore Limited (China)


• Irving Shipbuilding Inc. (Canada)

Key Industry Developments

• In April 2024, Transocean extended the contract for deep-water drilling in Deep-water Asgard. The project is valued at around USD 195 million and is scheduled to start in June 2024. This contract extension is a significant success for Transocean, showing sustained interest in its rigs and skills. It cements the company's position in the Gulf of Mexico and suggests a favorable outlook for the offshore drilling sector.


• In October 2023, Equinor, a major energy company from Norway, teamed up with Havkraft, a pioneer in wave energy, to conduct a feasibility analysis on reducing carbon emissions from offshore operations. The analysis will investigate how wave energy technology can be incorporated to provide power for mobile offshore drilling units. Havkraft's unique wave energy converters are specifically engineered for optimal performance in isolated offshore settings, making them an excellent fit for supplying power to MODUs.