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The Noble Tom Madden vessel drilled discovery wells offshore Guyana in the Stabroek Block. (Photo: Hart Energy)

Noble Corp banks on 6-year contractual extension in Guyana

The Noble Tom Madden vessel drilled discovery wells offshore Guyana in the Stabroek Block. (Photo: Hart Energy)

The recent 18th discovery of oil in Guyana’s Stabroek Block and that country’s successful renegotiation of the Payara project with ExxonMobil have boosted the prospects of offshore drilling contractor Noble Corp plc.

The company recently announced that its ultra-deepwater drillship Noble Tom Madden received a 6.5-year extension to its contract under the Commercial Enabling Agreement (CEA) with ExxonMobil for work offshore Guyana.

(Photo: businessinsider.com)

“We are extremely pleased to further our relationship with ExxonMobil and their partners offshore Guyana,” President and Chief Executive Officer of Noble Corporation plc Robert W Eifler stated.

“This award demonstrates the capability of the Commercial Enabling Agreement to align the interests of Noble and ExxonMobil while continuing our participation in one of the world’s premier offshore exploration and development opportunities and supports additional investment by Noble in local content,” he added.

New developments

In February this year, Noble Corporation Inc and ExxonMobil signed an agreement to extend drilling services in the Guyana-Suriname Basin by three and a half years.

“This award demonstrates the capability of the Commercial Enabling Agreement to align the interests of Noble and ExxonMobil while continuing our participation in one of the world’s premier offshore exploration…”

— President and Chief Executive Officer of Noble Corporation plc Robert W Eifler

At the time the agreement covered the lease of Noble Bob DouglasNoble Tom Madden, and Noble Don Taylor for drilling services in the Guyana-Suriname basin, though ExxonMobil could request an increase in the number of vessels as it sees fit.

Furthermore, it allowed for an extension of up to six more years depending on government approvals, development decisions, and other factors.

Noble Corp logo (Photo: Wikipedia)

Now, with the renegotiation of the CEA between Noble Corp and ExxonMobil, the Noble Tom Madden, which had until mid-February 2024 to continue its drilling operations in Guyana, will see its rig contract extended to mid-August 2030. 

Terms of the new agreement

The agreement will see to the update of the rig day rate at least twice per year subject to a scale-based discount and performance bonus under the CEA.

Noble Bob Douglas drillship photographed here in the Guyana-Suriname basin during an exploration. (Photo courtesy of Noble Corp)

At the same time, ExxonMobil will also have the flexibility to transfer awarded terms between the Noble Don Taylor, Noble Bob Douglas, Noble Tom Madden, and Noble Sam Croft.