Sunday, June 26, 2022

Driller with most rigs offshore Guyana gets extension with advancement of Yellowtail

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ExxonMobil’s sanctioning of Yellowtail – its biggest project to date offshore Guyana – has seen the extension of four Noble drillships through to 2025.

US$10B Yellowtail Project set to unleash a tsunami of economic benefits

On April 1 this year, the Noble Tom Madden, Noble Sam Croft, Noble Bob Douglas and Noble Don Taylor operating under a Commercial Enabling Agreement (CEA) were awarded 7.4 years of incremental term in connection with the sanctioning of Yellowtail.

“Each rig is now contracted to the fourth quarter of 2025,” Noble said.

Noble’s work with ExxonMobil in Guyana is governed by the CEA which provides benefits to both parties, including significant operational efficiency of having four extremely similar rigs operating in the same region, and the security of supply.

OilNOW understands that both parties benefit from market-based day rates that are reset to market, March 1, and September 1 each year, in a manner that reflects day rates for a six-month job at the time of the reset.

Noble has said it sees activities and rates in Guyana and Suriname increasing this year.

Noble Corporation and Maersk Drilling kick-started a merger back in November 2021, to create a combined company that will own and operate a modern, high-end fleet of floaters and jack-up rigs across benign and harsh environments, serving customers in the most attractive offshore oil and gas basins, such as Guyana-Suriname.

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