Offshore staff
LONDON – Noble Corp. plc has received the full settlement value of $540 million from Freeport-McMoRan stemming from the termination agreement between Noble, Freeport, and Freeport’s then standalone oil and gas subsidiary.
Noble received the payment in cash through the receipt of Freeport shares, which were immediately resold by the company under a previously disclosed distribution agreement.
In addition to the $540 million, Noble can receive additional contingent payments from Freeport of $25 million and $50 million depending upon the average price of WTI crude oil over a 12-month period beginning June 30.
The contracts for bothNoble Sam Croft and Noble Tom Madden were terminated on May 10. Both rigs are in the process of being warm stacked while contract opportunities are evaluated. While warm stacked, operating costs are expected to decline by an estimated $100,000/day for each rig, Noble said.
For 2Q 2016, Noble expects to recognize revenues associated with these two rigs of approximately $431 million, which includes a $348 million termination fee, $52 million related to 2Q operations through the date of termination, and $31 million for the accelerated recognition of other deferred contractual items.
The remaining proceeds from the settlement will be applied to outstanding accounts receivable, mainly from 1Q.
06/23/2016
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