Noble suffers jackup delay in Saudi, eyes financial restructuring

Noble suffers jackup delay in Saudi, eyes financial restructuring

Offshore driller Noble Corporation has revealed in its latest set of results that the contract for jackup rig Noble Scott Marks has been suspended at the request of its client.

The jackup is located offshore Saudi Arabia, and contracted to Saudi Aramco who have suspended the contract for up to 365 days. The suspension is scheduled to commence this month, after the conclusion of the well it is currently drilling.

Noble will not receive a day rate during the suspension, but does have the right to market the rig to look for new work opportunities.

In the last quarter, Noble posted a loss of $1.1bn on revenues of $280m driven by impairments. Julie Robertson, chairman, president and CEO of Noble, said that the company remained focused on addressing its capital structure.

“To that end, we have engaged Evercore as a financial advisor and are actively working with them to evaluate alternatives to enhance our liquidity position and reduce our total amount of debt and corresponding interest costs. These alternatives include, but are not limited to, potential capital exchange transactions as well as a more comprehensive debt restructuring,” Robertson said.

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