Offshore staff
LONDON – Noble Corp.’s 12 floating rigs achieved utilization of 58% in 1Q 2020, compared to 60% in 4Q 2019, the company revealed in its latest results statement.
Excluding three cold stacked units, utilization in 1Q and 4Q was 78% and 80%, respectively. In addition to the effect of fewer calendar days in 1Q, there was a 4% decline in operating days when compared to 4Q, due largely to reduced days for the drillship Noble Bully II, which spent the quarter mobilizing to a new stacking location. Partially offsetting the decline in operating days was a full quarter of operations on the drillship Noble Don Taylor offshore Guyana.
At the end of 1Q, seven of the company’s nine actively marketed rigs were contracted. In April, ExxonMobil placed the drillship Noble Tom Madden offshore Guyana on standby for up to 90 days at a reduced day rate.
Its 13 jackup rigs (before the retirement of the Noble Joe Beall) experienced marginally fewer operating days when compared to 4Q, the drilling contractor said. A reduction in operating days on each of the rigs Noble Joe Beall, Noble Regina Allen, Noble Johnny Whitstine and Noble Hans Deul, was largely offset by increased activity on the Noble Tom Prosser, Noble Houston Colbert, and Noble Joe Knight.
Due to the retirement of the Noble Joe Beall and fewer calendar days, utilization finished 1Q at 94%, compared to 93% in 4Q. During the quarter, the Noble Hans Deul and Noble Sam Turner completed contracts in the UK North Sea and have been warm stacked.
The Noble Sam Hartley and Noble Houston Colbert were warm stacked after completing work assignments in April. Also, ExxonMobil put the Noble Tom Prosser offshore Australia on standby at a reduced day rate for up to 365 days.
Saudi Aramco has suspended the contract for the jackup Noble Scott Marks offshore Saudi Arabia. The contract suspension, which covers a period of up to 365 days, is expected to start this month, following the conclusion of the well in progress. During the suspension period, no day rate will be paid. Noble said it has the right to market the rig in pursuit of other work opportunities in the region.
Julie J. Robertson, the company’s chairman, president, and CEO, said: “The reduction in demand as a result of the COVID-19 pandemic and the precipitous escalation in global crude oil supplies have placed the oil and gas industry in a state of heightened duress. The consequences of this combination of detrimental events are increasingly visible, and the offshore drilling industry will endure another period of depressed business activity for a duration of time that remains difficult to forecast.”
05/08/2020
