Noble floater fleet 100% contracted in Q2 as oil companies scramble to secure units

All of Noble’s floating drilling units were contracted in the second quarter of the year, as offshore drilling continues its renaissance.

And the company’s president and chief executive, Robert Eifler expects the “positive momentum to continue” as companies scramble to secure rigs and jack-ups.

In the second quarter of the year, Noble’s (NYSE:NE) marketed floater fleet was 100% contracted.

The Noble Faye Kozack was awarded a one-well contract with US-firm LLOG for work in the Gulf of Mexico, at a rate of $420,000 per day.

The contract includes managed pressure drilling services and is expected to commence in late 2022 or early 2023.

In Suriname, APA, formerly Apace, executed its second option for the Noble Gerry de Souza and is expected to novate the rig to TotalEnergies for one well.

The Noble Globetrotter I recently finished up work for Shell and demobilised to complete routine maintenance following the 10-year contract.

Following its brief down time, the rig is scheduled to move to Mexico during the third quarter to commence work for CNOOC and Petronas.

In the second quarter, the Noble Regina Allen commenced operations in Guyana for Repsol.

Once it completes its work scope, it is scheduled to return to Trinidad and Tobago to drill six firm wells with a different operator.

In the UK North Sea, the Noble Sam Hartley is preparing to commence its program for TotalEnergies.

© Supplied by Noble Drilling

Noble laid out its rig operations as part of its second quarter financial results, in which it revealed that the company’s estimated revenue backlog was approximately $2.1 billion.

Mr Eifler said: “Demand for offshore drilling is increasing in all our key operating regions, and we expect this positive momentum to continue despite global economic concerns.

“Tender activity remains at attractive levels and our customers have a robust pipeline of opportunities for our rigs. We look forward to completing the business combination with Maersk Drilling in early October and creating a dynamic leader in offshore drilling.

“I’m confident in Noble’s ability to deliver on the key transaction rationale, which include enhancing the customer experience and executing on our commitment to return capital to shareholders.”

Noble’s experience in recent months hold true with predictions from analysts that the offshore drilling rig market is poised for a “supercycle”.

With oil and gas prices at highs not seen for years and Europe’s energy crises worsening daily, government and companies are trying desperately to boost hydrocarbon supplies.

New field developments has increased the demand for drilling, but after a rotten few years for the sector – that has led to many rigs being scrapped and forced companies to merge – the number of available units has vastly diminished.

As a result, day rates for renting rigs have already swelled and are expected to increase further in the coming months.

It is possible the market could get even tighter, with Noble and Maersk entering the final stages of a long-running merger.