CBR
search
Energy

One three Noble oil-drilling vessels is photographed here in the Guyana-Suriname basin during an exploration. (Photo: Vessel Finder)

Noble Corp deep in the red, buoyed by C’bean prospects

One three Noble oil-drilling vessels is photographed here in the Guyana-Suriname basin during an exploration. (Photo: Vessel Finder)

Despite reporting a fourth-quarter loss of US$33 million, offshore drilling contractor Noble Corp plc is salivating over its prospects in Caribbean waters.

For the three months ended December 31, 2019, the London, United Kingdom-headquartered company reported total revenue of US$441 million. Of this amount, the company said that it earned US$167 million from “the previously announced Noble Bully II contract buyout with Royal Dutch Shell plc (Shell)”.

(Photo: PGM Capital)

Already in the Caribbean

In March last year, the company announced that it purchased a 40 per cent participation stake in two offshore oil exploration and production contracts in Colombia from Shell.

As part of the deal, Noble Energy became the operator of the COL-3 and GUA OFF-3 blocks located offshore in the Colombian Caribbean Sea — both covering over 880,000 hectares

In the meantime, the oil-drilling company reported that for the entire year it earned revenue totalling US$1.3 billion. Notwithstanding, it posted net loss for the year of US$323 million.

Commenting on the results, Chairman, President and Chief Executive Officer of Noble Corporation plc Julie J Robertson stated, “We closed another quarter with strong operational performance, extending our record for consistency that remains among the best in our industry. Our fleet uptime in the fourth quarter exceeded 97 per cent, while quarterly contract drilling revenues and EBITDA were well ahead of our expectations.”

Chairman, President and Chief Executive Officer of Noble Corporation plc Julie J Robertson (Photo: YouTube)

New revenue streams

However, with a loss on the books, it seems the company has gone in search of additional revenue streams in the region to turn around its profitability, particularly in Trinidad and Tobago and the Guyana-Suriname Basin.

The company indicates, further, that there is a “heightened interest in offshore oil and gas resources among the industry’s exploration and production companies” in the region.

“…we completed several advantageous rig mobilisations over the year, two of which allowed us to expand our footprint in the prolific Guyana-Suriname basin”

— Chairman, President and Chief Executive Officer of Noble Corporation plc Julie J Robertson (Photo: YouTube)

As a result, the company said it is looking forward to taking advantage of its presence in the Guyana-Suriname basin with a renewed multi-year contract with ExxonMobil, strong fleet utilisation, and important economies of scale and logistical savings.

According to Robertson, “Also, we completed several advantageous rig mobilisations over the year, two of which allowed us to expand our footprint in the prolific Guyana-Suriname basin. These rig moves have further enhanced our global fleet positioning as we evaluate opportunities across our premium floating and jackup fleets.”

In terms of Trinidad and Tobago, in December 2019 the Noble Regina Allen won a contract to operate within the twin-island republic’s shores. The contract will commence during the second half of 2020.