Noble Corporation to Construct Two New Ultra-Deepwater Drillships

ZUG, Switzerland, Jan. 19, 2011 /PRNewswire/ -- Noble Corporation (NYSE: NE) today announced that a subsidiary has signed a contract with Hyundai Heavy Industries Co. Ltd. ("HHI") for the construction of two ultra-deepwater drillships, increasing the Company's number of floating drilling units to 26, 14 of which are dynamically positioned.  The new ultra-deepwater drillships, to be named at a later date, will be constructed on a fixed price basis at HHI's shipyard in Ulsan, Korea, with expected deliveries from the shipyard in the second and fourth quarters of 2013, respectively.  Operations are expected to commence 90-120 days after delivery following mobilization and acceptance testing.

The delivered cost of the new drillships is expected to be $605 million each, and includes the turnkey construction contract, Company furnished equipment, project management and spares, but excludes capitalized interest.  The construction contract contains favorable payment terms that incentivize on-time delivery.  The contract further includes a fixed price option for up to two additional drillships, which must be declared by early May 2011 for delivery in 2014.

"We believe the fundamentals of the global ultra-deepwater market will continue to be strong in the decade ahead," said David W. Williams, Chairman, President and Chief Executive Officer, Noble Corporation.  "These units, capable of meeting the industry's most stringent operating requirements, further support our continued commitment to increasing the technological and operational capabilities of our fleet.  Furthermore, the previously announced Letter of Intent from Shell for one unit reduces the speculative risk and enhances future shareholder value."

The rigs are based on a Hyundai Gusto P10000 hull design and are designed for operations in waters of up to 12,000 feet, although either may be outfitted for less depending on specific contract requirements.  The units will have DP-3 station keeping abilities, the ability to handle two complete BOP systems, a heave compensated construction crane to facilitate deployment of subsea production equipment and accommodations for up to 200 personnel, in addition to a number of other operational enhancements beyond the shipyard's base specifications.  

About Noble

Noble is a leading offshore drilling contractor for the oil and gas industry. Noble performs, through its subsidiaries, contract drilling services with a fleet of 73 offshore drilling units (including eight drilling rigs currently under construction), located worldwide, including in the Middle East, India, the U.S. Gulf of Mexico, Mexico, the Mediterranean, the North Sea, Brazil, West Africa and Asian Pacific. Noble also owns and operates a dynamically positioned floating production, storage, offloading vessel.  Noble's shares are traded on the New York Stock Exchange under the symbol "NE". Additional information on Noble Corporation is available via the worldwide web at http://www.noblecorp.com.

Statements regarding newbuild costs, delivery dates, performance capabilities and specifications, payment schedules, shareholder returns, dayrates, strategic intent and market outlooks, the Shell Letter of Intent, as well as any other statements that are not historical facts in this release, are forward-looking statements that involve certain risks, uncertainties and assumptions. These include but are not limited to actions by third parties, corporate approvals, negotiation of and agreement on a final construction contract, governmental actions, litigation risks, operating hazards and delays, risks associated with construction outside of the U.S., factors affecting the level of activity in the oil and gas industry, supply and demand of drilling rigs, factors affecting dayrates and the duration of contracts, factors that affect time in the shipyard,  weather conditions, the future prices of oil and gas and other factors detailed in the Company's most recent Form 10-K, Form 10-Q's and other filings with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated.

SOURCE Noble Corporation

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