On 31 December 2012, Kulluk drifted aground after the towing line to the icebreaking anchor handling tug supply vessel Aiviq parted in heavy weather.

On New Year's Eve, tug crews were ordered by the United States Coast Guard to cut the rig loose, leading to her grounding.

[8][9] Kulluk's movement south for the winter was at least in part motivated by an effort to avoid State of Alaska property taxes on oil and gas extraction equipment.

[15] After further assessment of damage, Kulluk was towed to Captains Bay, Unalaska, Alaska, where she was loaded on the heavy lift ship Xiang Rui Kou.

[20] In April 2014, the United States Coast Guard report said that the incident was due to Shell's "inadequate assessment and management of risks" in icy, storm-tossed waters.

[22] In May 2015, a report by the National Transportation Safety Board blamed "Shell’s inadequate assessment of the risk for its planned tow" for the accident.

In 2007, Kulluk was fitted with two 62-tonne, 2,000 shaft horsepower (1,500 kW) ThrustMaster hydraulic overboard azimuth thrusters, the largest ever supplied by the company, to provide the platform an ability to move between drill sites and improve her operability in ice.