Noble Corporation, an offshore drilling contractor, announced this week that it had been awarded a contract with Norwegian oil company Statoil to operate in the North Sea for four years. The value of the agreement is expected to be worth $655 million and the company will begin drilling in 2016.
According to the company's press release, Noble will be using a newbuild ultra-high specification jackup at the Mariner Project in the UK section of the North Sea that will be able to operate in water depths up to 500 feet, and drill up to 32,000 feet deep.
"This unit is designed to meet some of the industry's most stringent operating requirements and supports Noble's ongoing commitment to increasing the technological and operational capabilities of our fleet. Furthermore, constructing this unit for use on a sanctioned project reduces our risk and enhances future shareholder value," Noble CEO David Williams said in the release.
The rig has been created for operation in "harsh" weather environments, and is known to be one of the most versatile jackup rigs. According to the Boston Globe, Statoil is planning to invest more than $7 billion over the next 30 years in this field, and expects an output of 55,000 barrels of oil per day.
As the offshore drilling industry becomes more competitive, those currently involved may be expanding or improving their current rigs and other equipment to keep up. When investing in new machinery, offshore oilfield insurance is also vital to make sure that regardless of what happens, offshore drilling companies are protected.