Situation with Noble Corporation Drilling Rigs in Brazil

In the second quarter, Noble Corporation faced negative financial impacts due to the temporary suspension of two drilling rigs in Brazil. The shutdown was triggered by a recent regulatory inspection of the vessels.

Financial Results and Causes of Losses

The Houston-based company reported a net loss of $37 million for the second quarter. The main factors were the downtime of the ultra-deepwater drillship Noble Faye Kozack and the semi-submersible rig Noble Courage, both of which were halted in May and June following an audit by the Brazilian oil and gas regulator ANP. The audit is ongoing, and details about the rigs’ status have not been disclosed.

Both rigs have since resumed operations, and the company continues to engage with the regulator. Negotiations with the client, Petrobras, regarding the terms of the suspension are still underway.

Contracts and Outlook

The Noble Faye Kozack is contracted with Petrobras until January 2027, while the Noble Courage is secured with the state-owned Brazilian company until December 2030. Noble’s revenue in the second quarter dropped by 15% compared to the same period last year, totaling $720 million, mainly due to the rig suspensions.

The company has revised its 2026 forecast, now expecting revenue between $2.8 and $2.9 billion, which is lower than the previous estimate of $2.8–3 billion. The updated outlook factors in a potential $15 million revenue reduction through January 2027, related to the search for administrative solutions following the suspensions.

Market and Demand

The South American market has seen a slight decline in activity due to reduced operations by Petrobras. Demand for ultra-deepwater (UDW) rigs on the continent has decreased by three units over the past six months, primarily because of the slowdown in Brazil, leaving a total of 32 rigs. The main reason for the drop in activity has been the cutback in Petrobras’ operations.

Despite the suspensions, Noble’s other rigs delivered stable results in the second quarter. Two new contracts were signed for the Noble Viking and Noble Claus Bachmann.

Future Plans and Global Demand

The jack-up rig Noble Interceptor will return to service in September for a program with Aker BP in Norway, expected to last five to eight months, after which it will be available for potential projects in 2027.

In the UK, most of the Noble Innovator’s contract portfolio with BP was transferred to another rig, the Noble Intrepid. The remaining Innovator contracts with BP will conclude in September, while Intrepid’s work will continue for another year.

The company expects to announce new contracts in the coming months, with the main opportunities anticipated in the second half of 2027.

Stable Demand Amid Market Volatility

Despite ongoing oil price volatility due to the conflict in the Middle East, the underlying demand for UDW drilling remains stable and shows positive momentum. Global demand for UDW is considered strong and comparable to recent years.

Clients’ long-term price expectations have not changed, as Brent forward curves have remained virtually unchanged this year. The company maintains its previous stance, focusing on the stability of the Brent curve rather than relying on overly optimistic forecasts.