Noble Corporation plc Announces Contract Extension In Guyana

Rhea-AI Summary

Noble Corporation plc (OTC-PINK: NE) announced a contract extension for the ultra-deepwater drillship Noble Tom Madden with ExxonMobil for an additional 6.5 years, extending the contract to Mid-August 2030. The previous contract was valid until Mid-February 2024. The updated rig day rate will be assessed biannually, incorporating a scale-based discount and performance bonuses. This agreement aligns the interests of both companies and enhances Noble's investment in local content in Guyana.

Positive

• Awarded a 6.5-year contract extension with ExxonMobil, securing revenue until Mid-August 2030.
• Potential for increased rig day rates due to performance bonuses and scale-based discounts.

Negative

• None.

LONDON, Oct. 8, 2020 /PRNewswire/ -- Noble Corporation plc (OTC-PINK: NEBLQ, the Company) today announced that the ultra-deepwater drillship Noble Tom Madden has been awarded approximately 6.5 years of additional contract term under the Commercial Enabling Agreement ("CEA") with ExxonMobil for work offshore Guyana.  The Noble Tom Madden was previously contracted until Mid-February 2024 and the additional term will extend the rig contract to Mid-August 2030.  The rig day rate will be updated at least twice per year subject to a scale-based discount and performance bonus under the CEA which also provides ExxonMobil the flexibility to transfer awarded term between the Noble Don Taylor, Noble Bob Douglas, Noble Tom Madden, and Noble Sam Croft.   

Robert W. Eifler, President and Chief Executive Officer of Noble Corporation plc, stated, "We are extremely pleased to further our relationship with ExxonMobil and their partners offshore Guyana.  This award demonstrates the capability of the Commercial Enabling Agreement to align the interests of Noble and ExxonMobil while continuing our participation in one of the world's premier offshore exploration and development opportunities and supports additional investment by Noble in local content."

About Noble Corporation plc

Noble is a leading offshore drilling contractor for the oil and gas industry. The Company owns and operates one of the most modern, versatile and technically advanced fleets in the offshore drilling industry. Noble performs, through its subsidiaries, contract drilling services with a fleet of 24 offshore drilling units, consisting of 12 drillships and semisubmersibles and 12 jackups, focused largely on ultra-deepwater and high-specification jackup drilling opportunities in both established and emerging regions worldwide. Noble is a public limited company registered in England and Wales with company number 08354954 and registered office at 10 Brook Street, London, W1S 1BG England. Additional information on Noble is available at www.noblecorp.com.

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SOURCE Noble Corporation

FAQ

What is the significance of Noble Corporation's contract extension with ExxonMobil?

Noble Corporation's contract extension with ExxonMobil secures the ultra-deepwater drillship Noble Tom Madden for an additional 6.5 years, ensuring steady revenue through 2030.

When does the contract for the <i>Noble Tom Madden</i> end?

The contract for the Noble Tom Madden has been extended to Mid-August 2030.

What financial benefits does the contract with ExxonMobil offer to Noble Corporation?

The contract includes biannual updates to the rig day rate, potential performance bonuses, and scale-based discounts, providing financial benefits and revenue stability.

How does the Commercial Enabling Agreement benefit Noble Corporation?

The Commercial Enabling Agreement allows for flexibility in resource allocation between rigs and aligns the interests of Noble Corporation and ExxonMobil.