Noble Reaches Deal With Client Over Idled Gulf Drilling

23rd Jun 2010 23:19

DOW JONES NEWSWIRES Noble Corp. (NE) said it reached an agreement with an unnamed customer over how to handle their arrangement during an offshore drilling moratorium in the Gulf of Mexico. The moratorium--overturned in court Tuesday but still in force nevertheless--has set off several battles between oil companies and rig operators over who should pay for rigs idled because of it. Last week, Anadarko Petroleum Corp. (APC) asked a federal judge to terminate its contract for a Noble rig, the first of the disputes to go to court. But Wednesday, Nobel said it and its customer who contracted the drilling unit Noble Clyde Boudreaux agreed the rig will be placed on standby through Dec. 12. During that time, the unit will receive a fee of $145,000 a day. The companies also agreed to negotiate a new drilling contract after the standby period at a dayrate of $397,500, which will have a term equal to what remained in the original deal, going until around November next year. The company also said it is still disputing Anadarko's claims. The moratorium on deepwater drilling in the Gulf was overturned by a federal judge Tuesday. President Barack Obama's administration said it would appeal the ruling, which meant the ban would remain in effect for the time being. The ban was a response to a massive oil spill from a deepwater well majority owned by BP PLC (BP, BP.LN). The explosion and sinking of the rig working on the well raised uncertainties about the risks of deep-sea drilling, prompting the administration to launch the moratorium. Noble Energy shares were were down 0.1% at $29.41 in after-hours trading. The stock has dropped 28% since the start of the year, underperforming the broader market. -By Joan E. Solsman, Dow Jones Newswires; 212-416-2291; [email protected] (END) Dow Jones Newswires June 23, 2010 18:19 ET (22:19 GMT)