#United States #Houston #Noble Corporation #Norwegian Market #Deepwater Drilling

Noble Corporation Expands into Norwegian Floater Market

In a significant development for the offshore drilling sector, Noble Corporation plc (NYSE: NE) has recently announced an impressive portfolio of new contract awards totaling $1.3 billion. This announcement not only highlights the company's growth trajectory but also marks its strategic penetration into the harsh environment floater market in Norway.

Strong Demand in Offshore Drilling

Robert W. Eifler, the President and CEO of Noble, commented on the contracts' significance, stating that they reflect a strong demand for deepwater drilling on a multi-year basis. The backlog additions, which have notably increased the utilization rate of its fleet, underline the Company's commitment to meeting the rising needs of the oil and gas industry.

Out of the nine rigs that Noble has secured contracts for, the centerpiece is the Noble GreatWhite, which has been awarded a three-year contract by Aker BP. This particular contract, valued at approximately $473 million, is set to commence operations in Q2 2027, marking Noble GreatWhite's inaugural campaign in Norway. Such an undertaking signifies a pivotal expansion on the Norwegian Continental Shelf, with the company ready to allocate around $160 million in reactivation and preparation activities.

Other Key Contracts

In addition to the contract with Aker BP, Noble has also made notable arrangements elsewhere:

• - Noble Gerry de Souza has received a two-year drilling contract from Esso Exploration and Production Nigeria (an affiliate of ExxonMobil) which may extend for an additional three years. This project is projected to add about $292 million to Noble's backlog and is set for mid-2026.
• - Noble’s involvement in Guyana has been reinforced with ExxonMobil, extending the drilling operations across four of its drillships through February 2029.
• - The Noble BlackRhino is scheduled to conduct a workover well contract in the U.S. Gulf, showcasing the Company's versatility in operation timelines.
• - Notably, Noble Endeavor and Noble Developer were awarded contracts for drilling operations in South America and Trinidad, respectively, contributing a collective substantial value to the backlog.

Future Expectations

While this expansion will require initial capital expenditures estimated at $50 million for contract preparation in 2026, Noble anticipates that these endeavors will significantly boost fleet EBITDA and free cash flow in the years to come. The decrease in capital expenditures expected beyond 2026 is also anticipated to further stabilize the Company's financial posture.

Ultimately, Noble Corporation's proactive approach in securing these contracts emphasizes its resilience and adaptability in a fluctuating market while prioritizing reliable service delivery to all partners involved. This strategic entry into the Norwegian market not only opens new revenue opportunities but also solidifies Noble’s status as a leading offshore drilling contractor globally.

Conclusion

In conclusion, Noble Corporation's latest announcements reflect not just immediate business growth but also a long-term strategy aimed at increasing their footprint in internationally acclaimed drilling markets. By aligning with notable partners and deploying advanced technologies, Noble is positioned to face future challenges head-on and continue its legacy established since 1921 in the offshore drilling sector.