Noble Corporation said this week contract drilling services revenue for the second quarter of 2021 totaled $200 million compared to $159 million in the combined first quarter of this year. In April, the Noble Sam Croft began its contract in Guyana, bringing the total number of rigs the company has working for ExxonMobil in the South American country to four.
“In addition, the Santa Anna next year will bring our fleet to five high spec Ultra-Deepwater rigs in the region,” said Robert W. Eifler, President and Chief Executive Officer of Noble Corporation. “The rig crews working in Guyana are delivering outstanding performances and I am pleased that our customers continue to entrust us with some of their most important wells.”
Noble’s work with ExxonMobil in Guyana is governed by a Commercial Enabling Agreement (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.
“Importantly, we experience strong utilization over a multi-year period without realizing downtime between contracts while Exxon benefits from having access to and being highly familiar with some of the highest quality rigs that are supported by our infrastructure-related investments in the region,” said Richard Barker, Chief Financial Officer.
Barker said 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 with a single digit discount plus potential incentives that allow Noble to earn back much of the limited discount.
“The rate renewal process takes place in the six-month period leading up to the effective renewal date. Guyana is one of the premier offshore plays globally and will be a critical component of the global oil supply for decades to come,” the CFO pointed out.
He said the CEA “is truly a win-win” for the Stabroek Block co-venturers and Noble. “Taken in total, this arrangement permits us to provide high-performance, cost-effective services to a valued client…”
The company said it sees activities and rates in Guyana and Suriname increasing into 2022 and remain committed to serving its customers and the local communities in these locations.
