Monday, September 26, 2022

With resources topping 17 billion boe, Guyana-Suriname Basin boosting Noble earnings

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Contract drilling services revenue earned by Noble Corporation for the second quarter of 2022 totalled US$262 million compared to $195 million in the first quarter, it reported Monday.

Noble said marketed fleet utilisation was 85% in the three months ended June 30, 2022, compared to 75% in the previous quarter. Contract drilling services costs for the second quarter were US$178 million, up from US$166 million in the first quarter of 2022. Noble’s Adjusted EBITDA for the three months ended June 30, 2022, was US$84 million compared to US$27 million in the first quarter of 2022. Capital expenditures totalled US$31 million in the second quarter. Net cash provided by operating activities for the three months ended June 30, 2022, was US$88 million and free cash flow was US$56 million for the same period.

Senior Vice President and Chief Financial Officer, Richard Barker, said this quarter’s revenue was “positively impacted” by a full quarter of operations in the Guyana-Suriname Basin.

“Our regional contracting activity in the second quarter included APA Corp’s exercise of its second option for the Noble Gerry de Souza in Surname,” said Noble President and Chief Executive Officer, Robert Eifler. The drillship had a full quarter of operating days, Barker said. It encountered water-bearing reservoirs at the Rasper well of Block 53.

The Noble Regina Allen operated offshore Guyana for the drilling of the Beebei-Potaro well at the Kanuku Block and encountered water bearing targets.

Noble’s revenues also benefited, according to Barker, from a full quarter impact of the March 1 day rate increases for four rigs operating in Guyana under a Commercial Enabling Agreement. Noble said, during the quarter, the four drill ships were awarded 7.4 years of incremental term in connection with the sanctioning of the Yellowtail development.

The Guyana-Suriname Basin has been central in the company’s earnings as exploration and development drilling activities continue to ramp up. With estimated recoverable resources in Guyana standing at nearly 11 billion barrels of oil equivalent (boe) and over 6 billion boe in Suriname, the South American basin’s total estimated recoverable resources now exceed 17 billion boe.

“The Guyana-Suriname Basin holds unmatched potential and is critical for meeting the world’s growing energy demand. Noble is proud to play our role in exploring and developing these prolific fields and will continue to invest in our operational capabilities and the local communities to support our market leading position,” Eifler said.

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