Saudi Aramco suspends Noble Scott Marks jack-up rig

Oil giant Saudi Aramco has suspended the contract for one of Noble Corporation’s offshore drilling rigs.

Noble Corp.
said in its financial report on Wednesday that the contract for the Noble Scott
Marks jack-up rig, located off Saudi Arabia, would be suspended at the request
of the client.

The rig is currently under contract with Saudi Aramco which previously requested that Noble Corp. reduces the rig’s dayrate from $159,000.

At the time,
the Saudi company asked for the dayrates of four jack-up rigs to be reduced –
Noble Scott Marks, Noble Roger Lewis, Noble Joe Knight, and Noble Johnny
Whitstine – with the request being taken ‘under review’ by Noble.

The offshore
drilling contractor added that Saudi Aramco suspended the rig for a period of
up to 365 days, with the suspension starting in the first half of May following
the conclusion of the well in progress.

It is worth
noting that the company did not provide any information regarding the previous
dayrate reduction request.

Noble stated
that during the suspension period, no dayrate would be paid. However, the
company has the right to market the rig in pursuit of other work opportunities
in the region. Regardless of the suspension, the rig is still under contract
with Saudi Aramco until late October 2022.

Noble reported a net loss in its financial report of $1.1 billion on total revenues of $281 million. The first quarter 2020 result included net after-tax unfavourable items totalling $977 million – including a pre-tax non-cash charge totalling $1.1 billion.

These related
to the impairment of the semi-submersible rigs Noble Danny Adkins and Noble Jim
Day, the drillships Noble Bully I and Noble Bully II, and certain capital
spares.