Cove Offshore Holdings was established in 1999 by a team of seasoned oil and gas professionals who recognized the growing importance of offshore exploration and production. Based in Aberdeen, Scotland, the company was founded with the vision of becoming a leading provider of offshore drilling services in the North Sea region.

In its early years, Cove Offshore focused on building a modern fleet of jack-up rigs capable of operating in the harsh North Sea environment. The company's first contract was secured in 2001, involving the drilling of several development wells for a major energy company operating in the UK continental shelf.