Offshore drilling contractor, Noble Corporation, will have four of its drillships assigned to ExxonMobil’s Stabroek Block operations for 2020. This was disclosed during the UK Company’s 2019 fourth-quarter earnings call.
Company officials noted that they continue to benefit from a defined commercial strategy that focuses on the placement of Noble’s premium assets in attractive regions, where interest among customers is on the rise, leading to the prospects of multiple years of exploration and development drilling opportunities. In this regard, it was noted that the improvement in contract coverage has been most pronounced in its floating fleet and is linked to its significant presence in the Guyana-Suriname Basin.
Noble’s President and Chief Executive Officer (CEO) Julie Robertson said, “…We have reached a unique commercial agreement with ExxonMobil covering drilling services in the Guyana Suriname Basin where we have been active since March 2018. The agreement which defines contract drilling terms for the services on three Noble’s ultra-deepwater drillships, Noble Bob Douglas, Noble Tom Madden and the Noble Don Taylor, provides for an initial three-and-a-half years of term with potential for six additional years, subject to future development decisions and government approvals…”
Further to this, Robertson disclosed that ExxonMobil has awarded a one-year contract to the Noble Sam Croft for drilling services offshore Guyana, increasing Noble’s presence to four rigs in this exploration and development play.
The Noble Sam Croft is expected to commence operations in the third quarter of 2020, following the completion of its current assignment offshore Suriname. The one-year contract term increases the number of rig years awarded under the agreement to four-and-a-half years, with six additional years dependent upon future developments and government approvals. Collectively, Robertson said that these contract awards build a solid base of floating fleet days under contract well into the decade with the award of additional contract days increasingly likely.
