Noble Corp. Floater Fleet Fully Contracted In Second Quarter

Oil & Gas

Offshore driller Noble Corporation has noted that its floater fleet was 100 percent contracted in the second quarter of 2022, with positive momentum set to continue.

Noble stated that the Noble Faye Kozack rig was awarded a one-well contract with LLOG for work in the U.S. Gulf of Mexico at a rate of $420,000 per day. The contract includes managed pressure drilling services and is expected to start in late 2022 or early 2023.

In Suriname, the APA Corp executed its second option for the Noble Gerry de Souza and is expected to novate the rig to TotalEnergies for one well.

The Noble Globetrotter I recently concluded with Shell and demobilized to complete routine maintenance following that 10-year contract. Following its brief out-of-service period, the rig is scheduled to mobilize to Mexico during the third quarter to start work for CNOOC and Petronas.

Additionally, during the second quarter, the four drillships under the Commercial Enabling Agreement were awarded 7.4 years of incremental term in connection with the sanctioning of the Yellowtail development in Guyana.

In the second quarter, the Noble Regina Allen began operations in Guyana for Repsol and, after completion of its current program, is scheduled to return to Trinidad and Tobago to drill six firm wells with a different operator.

In the UK North Sea, the NobleSam Hartley is preparing to start its program for TotalEnergies. Additionally, the NobleHouston Colbert mobilized to the Middle East and is now preparing for its 3.5-year campaign in Qatar.

The company added that its estimated revenue backlog was approximately $2.1 billion as of June 30, 2022. This excludes the 3.5-year firm term contracts for both the Noble Mick O’Brien and Noble Houston Colbert, which were signed after the quarter end.

“Demand for offshore drilling is increasing in all our key operating regions, and we expect this positive momentum to continue despite global economic concerns. Tender activity remains at attractive levels and our customers have a robust pipeline of opportunities for our rigs. We look forward to completing the business combination with Maersk Drilling in early October and creating a dynamic leader in offshore drilling,” Robert W. Eifler, President and Chief Executive Officer of Noble Corporation, said.

Noble also mentioned that the Danish public tender exchange offer process in connection with Noble’s business combination with Maersk Drilling has now started. The tender exchange offer period for outstanding Maersk Drilling shares is set for August 10 to September 8.

As previously announced, the company has entered into an asset purchase agreement to sell five jack-up rigs for $375 million to a newly formed subsidiary of Shelf Drilling to address the potential concerns identified by the UK Competition and Markets Authority (CMA) in the Phase I review of the proposed business combination with Maersk Drilling.

The rigs are Noble Hans Deul, Noble Sam Hartley, Noble Sam Turner, Noble Houston Colbert, and Noble Lloyd Noble.

Publication of the CMA’s final decision on the divestment’s adequacy in addressing their competition concerns is scheduled for September 1, 2022. If the buyer and related sale agreement are accepted by the CMA, the closing of the business combination is expected to occur on October 3, 2022, with the jack-up divestment sale expected to close promptly thereafter.

To contact the author, email bojan.lepic@rigzone.com

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