Noble Drilling Files Suit

Thursday, January 27, 2000
Noble Drilling Corporation, along with its subsidiaries Noble Drilling Services Inc. and Noble Drilling (U.S.) Inc., has filed suit against Samedan Oil Corporation and Mariner Energy, Inc. for breach of contract. In recent years, Noble Drilling has focused on increasing the number of rigs in its fleet capable of deepwater offshore drilling. A principal component of this deepwater strategy has been the conversion and upgrade of rigs to drill in water depths greater than 5,000 ft. Five of the six rigs in this program have been delivered under long-term contracts. Noble Max Smith was delivered on December 22, 1999 for use by Amerada Hess Corporation. A previously disclosed dispute with Union Pacific Resources concerning its use of Noble Max Smith has been resolved in principle and a drilling contract is in the process of final documentation. Noble Homer Ferrington, capable of drilling in 6,000 ft. of water, is the sixth rig in the program; and is scheduled for delivery in late February or March 2000. Noble Homer Ferrington remains subject to letter agreements dated February 1998 with Mariner Energy, Inc. and Samedan Oil Corporation, which require Mariner and Samedan to sign drilling contracts totaling five years and a related rig-sharing agreement. As previously disclosed, Mariner expressed its view in March 1999 its letter agreement had expired, however it further expressed its intention to work toward a mutually acceptable outcome. Noble Drilling is continuing its discussions with Mariner and is hopeful such a mutually acceptable outcome will be reached in the near future. Also as previously disclosed, Samedan has questioned the extent of its obligations under its letter agreement and expressed concerns about the rig's design criteria. Noble Drilling believes these operators have binding commitments to use the rig, and the rig meets the originally agreed upon design criteria. Accordingly, the company has filed suit to enforce its rights. If the company is not able to resolve this matter promptly, it could experience delay in finding alternate customers. While the current market for deepwater rigs has softened, the increases in the price of oil in recent months will stimulate drilling activity over time. In the interim, it is anticipated the unit could be contracted at dayrates lower than those reflected in the existing letter agreements, which would adversely affect the company's future revenues and operating income. Each $20,000 reduction in dayrate from the letter agreement rate would reduce earnings per share on an annualized basis by approximately $0.036.
Maritime Reporter June 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Offshore

Floating Production: $1.2b Speculative FLNG Ordered

The floating production business continues to be very strong, particularly in the LNG gas processing sector.  Last month saw a speculatively ordered floating liquefaction plant – a $1.

FLNG Prelude: A New Dawn in the Age of Maritime & Energy

Longer than four football fields, as big as six Nimitz-class aircraft carriers and almost as tall as the Taipei 101 skyscraper, Royal Dutch Shell PLC is hoping that its record-setting,

Corvus Energy, GMC Close Financing Agreement

Corvus Energy today announced that it has completed a strategic investment by Green Marine Capital (GMC) previously announced on May 5, 2014. Green Marine Capital,

Bulk Carrier Trends

Grounded Freighter Refloated in Lake St. Clair

The Federal Rideau, a 656-foot freighter that had been hard aground in the downbound shipping channel of Lake St. Clair since early Sunday morning, was refloated

News Flash! Greek Shipowners Prefer Bulkers

The buying interest from Greek ship owners is focused on bulkers to an increasing extent, BIMCO said. Data from VesselsValue.com reveal that Greek owners were at

Mercator Lines Profit Hit by Low Bulk Freight Rate

Mercator Lines (Singapore) reported a revenue of US$ 16.5 million for Q1 2015, an increase of 19% as compared to correspoding period in the previous previous year, however a net loss of US$ 7.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Pipelines Pod Propulsion Salvage Ship Electronics Ship Repair Ship Simulators Sonar
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1607 sec (6 req/sec)