As 2025 draws to a close, the global oil and gas drilling sector has witnessed dynamic growth with prominent breakthroughs in deepwater exploration, strategic contract extensions, and expanded regional footprints. Below is a curated roundup of critical news and trends shaping the industry, covering major projects, technological advancements, and market dynamics across key regions worldwide.
Major Drilling News & Project Updates
Exploration Breakthroughs
1.ConocoPhillips Makes Unexpected Gas Discovery in Australia (December 10)
ConocoPhillips Australia encountered significant gas shows in the Otway Basin offshore Victoria while drilling the Charlemont-1 exploration well. The gas was found in the Waarre C reservoir, approximately 160 meters above the primary Waarre A target, prompting a temporary drilling pause to assess well design adjustments. The Transocean Equinox semi-submersible platform conducted the operation under permit VIC/P 79.
2.Shell & Ineos Strike Oil in U.S. Gulf of Mexico Deepwater (December 19)
Shell (79% interest) and Ineos Energy (21% interest) confirmed an oil discovery in the Norphlet formation of the deepwater Gulf of Mexico. The Nashville exploration well, drilled to a depth exceeding 8 kilometers, successfully verified hydrocarbon potential in the area, with plans to potentially tie the discovery back to the Appomattox production platform.
3.Equinor Secures New Discovery Near Norway’s Tyrihans Field (December 22)
Equinor and its partners announced an oil, gas, and condensate discovery in the Norwegian Sea’s Tyrihans Øst prospect. Drilled via exploration well 6407/1-B-2 H, the find is located approximately 250 kilometers southwest of Brønnøysund, adding new resource potential to the mature Tyrihans field area.
4.Harbour Energy Confirms Condensate Gas Find in North Sea (December 19)
Harbour Energy, in partnership with Petoro, verified condensate gas reserves at the 35/8-8 S and A wildcat wells in the North Sea’s Vega Unit. The discovery strengthens the resource potential of the region and supports ongoing development plans for the area.
Contract Signings & Extensions
5.Shell Selects "Deepsea Mira" for Namibia Drilling Campaign (December 17)
Shell awarded a contract to Northern Ocean for the semi-submersible drilling rig "Deepsea Mira," set to commence operations in Namibia’s Orange Basin in April 2026. The agreement includes optional extension clauses, reinforcing Shell’s strategic focus on African deepwater exploration.
6.Aker BP Extends Multiple North Sea Contracts (December 18)
Saipem announced that Aker BP has exercised a third one-year extension for the Scarabeo 8 semi-submersible platform, continuing its operations in Norwegian offshore waters (original contract signed in March 2022). Additionally, Aker BP extended Archer’s drilling and maintenance services for North Sea platforms by three years to ensure operational continuity.
7.Odfjell Secures Equinor Contract for Norwegian Continental Shelf (December 19)
Odfjell Drilling’s semi-submersible rig "Deepsea Aberdeen" was awarded a contract by Equinor. The rig will first conduct drilling operations in the transition zone of the Norwegian Continental Shelf before moving to the Fram South project, expanding Odfjell’s presence in the region.
8.Helix Energy Wins UK North Sea P&A Contract (December 24)
Helix Energy signed a multi-year contract with a major operator to perform riserless plugging and abandonment (P&A) work on 34 subsea wells in the UK North Sea. The project, set to begin in 2026, focuses on environmentally responsible decommissioning of legacy assets.
Regional Market Expansion
9.Shengli Petroleum Engineering Enters Mexican Market (December 25)
Sinopec’s Shengli Petroleum Engineering SP-246 team spudded its first well in Mexico’s POZARICA oilfield, marking successful entry into the country’s core oil and gas market. The project adopts a localized operation model, gaining recognition from the client for its professional execution.
10.Petronas Completes First Well in Suriname Drilling Campaign (December 29)
Malaysia’s Petronas successfully completed drilling and safe plugging of the Caiman-1 exploration well in Block 52 offshore Suriname on December 6. The well, spudded on July 21, 2025, is the first of four planned wells in Petronas’ 2025-2026 exploration program in the region, advancing its footprint in South American offshore resources.
11.Xinjiang Yutai-1 Ultra-Deep Well Commences Drilling in China (December 10)
Xinjiang Yutai Oil & Gas Development Co. launched drilling operations for the Yutai-1 well in Korla, Xinjiang, with Xinpai Energy as the drilling contractor. Designed to a depth of 8,728 meters with a 210-day construction period, the project aims to establish a green and intelligent benchmark for deep exploration in the Tarim Basin.
Key Industry Trends for December 2025
- Deepwater & Ultra-Deepwater Focus: Major operators continued to prioritize deepwater exploration, with breakthroughs in the Gulf of Mexico, Namibia, Norwegian Sea, and Suriname. Technological advancements are enabling access to previously untapped deep-resource basins.
- Contract Stability in Mature Basins: The North Sea remained a hub for contract extensions, with operators like Aker BP and Equinor securing long-term rig services to maintain production stability, reflecting sustained confidence in mature region economics.
- Growing P&A Demand: Decommissioning activities gained momentum in the UK North Sea, driven by regulatory requirements and environmental commitments, creating opportunities for specialized P&A service providers.
- Geographic Diversification: Asian and Chinese operators expanded their global presence, with entries into markets like Mexico, while Petronas and other international firms advanced exploration in South America, diversifying regional risk exposure.
- U.S. Drilling Recovery: U.S. active oil and gas rig counts rebounded slightly by 3 units to 545, with gas rigs maintaining a high level of 127 (up 25 year-on-year) amid strong reserve demand, though growth remained cautious to offset natural production decline.
