R & B Falcon is the world’s largest offshore drilling company. Amidst increasing exploration budgets and increasing deepwater drilling activity, the company is making big investments in several new state-of-the art $ 300 million ultra-deepwater rigs. As day rates and utilization fall for shallow-water rigs, the company must decide whether to defend the idle capacity on the pricing. It must also decide whether to scale back its commitment to deepwater rig construction projects. Finally, the company fails … Read more »

R & B Falcon is the world’s largest offshore drilling company. Amidst increasing exploration budgets and increasing deepwater drilling activity, the company is making big investments in several new state-of-the art $ 300 million ultra-deepwater rigs. As day rates and utilization fall for shallow-water rigs, the company must decide whether to defend the idle capacity on the pricing. It must also decide whether to scale back its commitment to deepwater rig construction projects. Finally, the company wrestles with whether to pursue “turnkey” drilling contracts in which there is a whole range of drilling services.
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from
Kenneth Corts
Source: Harvard Business School
19 pages.
Publication Date: Apr 28, 1999. Prod #: 799110-PDF-ENG
R & B Falcon HBR case solution