An analysis of worldwide offshore drilling activities shows a clear trend towards deepwater. Advances in deepwater petroleum production are also continuing, with primary areas of activity currently in the Gulf of Mexico and offshore Brazil. As well, the Voring Plateau in offshore Norway and the West Shetlands show promise as the next deepwater frontiers. Although there are potential hydrocarbon resources in offshore deepwater Japan, there has not yet been any activity deeper than 500m, and there are no deepwater rigs owned oroperated Japanese companies.The technological challenges of drilling for or producing hydrocarbons in deepwater are formidable. The science involved is evolving rapidly, but the rapid changes also mean that there is no standard or established technology.With future needs in Japan, further exploratory markets worldwide, and a technological opening, a nexus of opportunities for a Japanese deepwater rig currently exist. Taking advantage of this opportunity would allow Japan to develop a world class deepwater experience base and technology level, and give Japana dvantages for research and development in all deepwater engineering fields.This paper describes the current world activity level in deepwater, and outlines some of the crucial technologies that can bedeveloped.