SUGAR LAND, Texas, June 24 /PRNewswire-FirstCall/ -- Noble Corporation today announced that Marathon Oil Corporation has exercised its right to extend the contract on the Company's new ultra-deepwater semisubmersible Noble Jim Day from two to four years. The Noble Jim Day, which is currently being constructed in Singapore, is expected to commence drilling operations in the deepwater Gulf of Mexico in the first quarter of 2010. The original commitment for the Day was announced in March 2007 and the contract was signed in August 2007 with an initial two-year term. The option will extend the contract to 2014.
"This contract extension points to the continued strength in the deepwater market, an area where Noble is an industry leader," said David W. Williams, Chairman, Chief Executive Officer and President. "Marathon is a valued customer and we are pleased to extend our relationship with them through this additional contract commitment. At the same time, this contract extension provides an excellent rate of return for our shareholders as we bring to market an important new asset to satisfy our customer's present and future deepwater drilling requirements."
Under the terms of the original drilling contract, Marathon had the right to elect by June 1, 2008 to extend the contract by an additional two years, to a total of four years. Estimated prospective contract revenues that could be generated over the four-year period are approximately $752 million. This estimate of contract revenues represents the maximum amount of revenues that may be earned in the applicable contract period, excluding revenues for mobilization, demobilization and cost escalations.
Noble Corporation is a leading offshore drilling contractor for the oil and gas industry. The Company performs contract drilling services with its fleet of 62 mobile offshore drilling units located in key markets worldwide, including the U.S. Gulf of Mexico, Middle East, Mexico, the North Sea, Brazil, West Africa and India. The fleet count includes five rigs under construction. Additional information on Noble Corporation is available via the worldwide web at http://www.noblecorp.com/.
This news release contains "forward-looking statements" about the business, financial performance and prospects of the Company. Statements about the Company's or management's plans, intentions, expectations, beliefs, estimates, predictions, or similar expressions for the future are forward- looking statements. No assurance can be given that the outcomes of these forward-looking statements will be realized, and actual results could differ materially from those expressed as a result of various factors. A discussion of these factors, including risks and uncertainties, is set forth from time to time in the Company's filings with the U.S. Securities and Exchange Commission.
