Rastus can probably give you more of the technical stuff, but I used to be a crew-boat driver on an oil rig in that same area and I can share a bit of insight. Rig work is mind-numbingly tedious and physically demanding, but boat driver is one of the better jobs.
The rig involved is a mobile floating platform designed to drill in particularly deep water. Some time back, that very same rig managed to set a new record for deep drilling. Anytime you have an extended drill depth, you have increased risk for something going wrong--it's just the nature of the beast. In this case, it appears that they hit a particularly high pressurized gas pocket at an unexpected time. They probably should have been prepared, but the tool pusher may have overlooked something, or somebody failed to do his part of the job--so, without knowing anything more specific to the contrary, I am going to put this in the operator error column. This is almost always a problem related to fatigue and boredom.
When you sign on to the rig, you sign for a two week stint and you are out there for 14-straight days with nothing to do but eat and work and sleep. The oil companies offer an increased pay incentive for you to stay for a third week, and an even greater incentive for you to stay for the fourth week. That means you have a bunch of semi-exhausted guys doing extremely dangerous work because they are making pretty good money by week 4. Somebody screwed up. When the high pressure gas exits the drill casing, it self-ignites, and explodes blowing up everything on the rig.
It looks like they lost 11 as of last report. That's a small number, considering. I can only add my prayer that God grants them eternal peace and provides some measure of comfort to the families left behind.