Machinery at a Kiewit Offshore Services construction site in Ingleside, Texas
The global offshore bonanza
Offshore operators are working through an FID backlog as the rig market consolidates, helped by improving project economics and a renewed security drive
More FIDs are expected to be taken on offshore projects this year after a backlog built up in 2025. This build-up has come about as a result of factors including rising supply chain costs and a lower-than-expected oil price last year. Operators held off on sanctioning projects to pursue cost-cutting and project optimisation, but developments that were at an advanced pre-FID stage will now be ready to move forward. Meanwhile, if oil prices remain elevated for the longer term, that could also have an impact on future offshore activity. Against this backdrop, the offshore rig market is consolidating. In February, Transocean announced it was acquiring Valaris in an all-stock transaction that was
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