Noble Corp.: Marathon canceled 4-year, $752MM rig contract on Noble Jim Day

Source: Noble Corporation

Noble Corporation (NYSE:NE) today reported that Marathon Oil Company (NYSE:MRO) has provided notice that it is terminating the drilling contract for the ultra-deepwater semisubmersible drilling rig Noble Jim Day

Marathon's stated reason for the termination was that the rig had not been accepted by Marathon by December 31, 2010. Noble believes the rig is ready to commence operations and should have been accepted by Marathon. The contract was for four years and represented approximately $752 million in contract backlog to Noble. 

"We are disappointed by Marathon's actions," said David W. Williams, Chairman, President and Chief Executive Officer, Noble Corporation. "Fortunately, the Noble Jim Day is one of the most capable rigs in existence and there are already a number of potential customers interested in a unit of this caliber." 

Noble also reported that an independent third-party has affirmed the rig's readiness. The Company also confirmed that the unit's subsea system, including the BOP, has received its certificate of compliance.



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