Noble Secures Contract Extension

Noble shares were up Friday after the company said in its latest rig fleet update that it won two contract extensions from Saudi Aramco, Saudi Arabia’s state oil company, for two jack-up rigs located in the Middle East.

The Noble Scott Marks jack-up rig received a five-year contract extension through to early July 2022 from early July this year when the original contract would have expired. The dayrate was reduced to $159,000 from $167,000 previously.

The Noble Roger Lewis jack-up rig got a contract extension from Aramco through to early March 2022 from early March this year, when the old contract was due to mature. The new day rate was also reduced to $159,000 from $167,000.

The Noble Globetrotter II, a drillship contracted by Shell, was idled for 730 days in South Africa through December 2018. While idle, daily rig operating costs can be reduced by up to $100,000. Following the idle period the contract the drillship will be in operation through early September 2023 with the unit earning a day rate based on a market index or the newly established floor of $275,000, whichever is higher. The rate will be adjusted every six months.

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