Liquidity Services Transforms Surplus Offshore Drilling Equipment Into Working Capital

Liquidity Services Transforms Surplus Offshore Drilling Equipment Into Working Capital




Total Bids


Gross Surplus Sales


Liquidity Services’ client, a global provider of offshore drilling services, faced a challenge after selling five drilling rigs. Ancillary surplus assets, including spare parts for each rig, occupied substantial space at storage facilities and represented a sizeable amount of stranded capital. The need was clear: find an effective way to liquidate these assets, free up space, and recoup capital.

The storage of surplus equipment in two locations – the Louisiana shore base and a storage facility in Texas – posed logistical challenges for the client. These assets were of significant value, and the client required a solution to handle the physical aspect of the disposal while ensuring the recovery of substantial working capital.

The client’s priorities revolved around two key factors: service and timeline.

Service involved meticulous cataloging and photographing of drilling risers and drill pipes at the Port of Houston and the shore base in New Iberia, LA. Maintaining a detailed master list of all assets, including cost centers and corresponding proceeds, was crucial. Additionally, the client required a tight timeline to eliminate storage costs.

Offshore Drilling Riser


Liquidity Services proposed a comprehensive solution to complete an inventory verification and photo documentation process. This was followed by a broad global marketing strategy that included a focused targeted marketing effort that offered assets with a broad to a larger bidder market, while other, more specialized items were presented to a more targeted audience.  Also included was project-specific logistical planning for inspection and transport.

The client considered alternative solutions, such as scrapping or direct sales, and dismissed after Liquidity Services’ assurance that our global marketing reach and competitive bidding strategy would maximize recovery value and defer loading and logistics costs to the buyers.


The project culminated in a successful disposal event of 16 lots comprising risers, drill pipes, and drill collars. With 50 bidders from the United States and Mexico, the project demonstrated Liquidity Services’ ability to handle complex asset disposition challenges and bring a competitive bidding market in a short timeframe.

Through meticulous planning, tailored marketing, and strategic execution, Liquidity Services successfully transformed the client’s surplus assets into over $1.1 million in working capital, avoiding additional cash outlay while freeing up valuable shore-based real estate.

Offshore Drilling Riser
Drill Pipe

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Xochi Shumann
Senior Account Executive
[email protected]

More Sales Methods. Higher Recovery.