Publications
Publications
- April 1999 (Revised August 1999)
- HBS Case Collection
R&B Falcon
Abstract
R&B Falcon is the world's leading offshore drilling contractor. Amid surging exploration budgets and increasing deepwater drilling activity, the company makes huge investments in several new state-of-the art $300 million ultra-deep-water drilling rigs. As day rates and utilization fall for shallow-water rigs, the company must decide whether to idle capacity to defend pricing. It must also decide whether to scale back its commitment to deep-water rig construction projects. Finally, the firm wrestles with whether to pursue "turnkey" drilling contracts, in which it would provide a complete bundle of drilling services.
Keywords
Citation
Corts, Kenneth S. "R&B Falcon." Harvard Business School Case 799-110, April 1999. (Revised August 1999.)