Exxon extends contract for drill ships costing about US$420,000 each to rent daily

May 06, 2023 News

Kaieteur News – American drilling company, Noble Corporation PLC, on Thursday announced that ExxonMobil Guyana has extended their contract for the rental of four of their drill ships at an average day rate of about US$420,000 (GYD$84 million) for each.

Noble’s fleet in Guyana Stabroek Block

The company had explained that market-based day rates are resent twice per year (March 1, and September 1) to the projected market rate at that time.

During the fourth quarter of 2022, Noble had announced that Exxon awarded an additional 7.4 rig years for the rental of drill ships: Noble Sam Croft, Noble Don Taylor, Noble Tom Madden, and Noble Bob Douglas to work in Guyana until November 2025 in the prolific Stabroek Block.

On Thursday, the company’s President and Chief Executive Officer (CEO) Robert W. Eifler, was quoted as being excited to announce the award of “significant additional backlog” from ExxonMobil Guyana under their Commercial Enabling Agreement (CEA). The announcement was made in the company quarterly results disclosing that Exxon has awarded an additional 6.3 rig years of backlog for the four drill ships operating under the CEA.

With the new extension by ExxonMobil Guyana, drill ships Noble Sam Croft, Noble Don Taylor, Noble Tom Madden, and Noble Bob Douglas will work in Guyana until second quarter of 2027.

“Our first quarter results reflect a strong start to the year from an operational, financial, and commercial perspective. The steady tightening of offshore drilling fundamentals is affording attractive opportunities to place our fleet into improving contracts. We are particularly excited to be awarded a significant additional backlog commitment from ExxonMobil Guyana under the CEA, and also to participate in the reemergence of Colombia as an active exploration basin with two of our deepwater rigs,” Eifler said.

He continued: “Integration of our business combination continues to progress smoothly thanks to the outstanding and tireless efforts of our fantastic offshore crews and global shore-based team. With our refinancing successfully completed, Noble has a streamlined and efficient capital structure that will further enhance our ability to focus on our priorities, including returning capital to shareholders.”

Moreover, owing to the 2016 Production Sharing Agreement (PSA), Guyana signed with Exxon – all of the company’s expense will be recovered. Under the deal, Exxon receives profits after 75 percent is withdrawn to cover operational expenses. As such, for every day the four drill ships work, Guyana will have to foot the bill.

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and Noble Bob Douglas, Guyana, Noble Don Taylor, Noble Sam Croft, Noble Tom Madden, oil

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