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‘Guyana is the best offshore play in the world presently’
…higher drilling rates likely next year – Drilling company CEO
Kaieteur News- Chief Executive Officer (CEO) and President of Noble Corporation, Robert Eifler has described Guyana as the best offshore location in the world presently.
Chief Executive Officer (CEO) and President of Noble Corporation, Robert Eifler
Eifler in an interview with Offshore Magazine earlier this month discussed offshore drilling trends, regional hotspots and his company’s role in the market.
Guyana’s unmatched offshore success, particularly in the Stabroek Block has left quite an impression on the CEO and President of the London-based offshore drilling company.
He was asked to comment on some of the key emerging hotspots around the world and how he sees those markets evolving. To this end, Eifler explained, “For deep water rigs, all the action remains in the golden triangle – U.S, West Africa and South America – and I don’t think that’s going to change. We are drilling in each one of those Regions.”
He was keen to note, “I would say for Noble, we’re particularly active in Guyana; we’re the largest drilling contractor in the country there, in what’s arguably the best offshore play in the world right now.”
The CEO added that he expects to see further growth in the Guyana and Suriname areas, as well as Brazil, Colombia and West Africa compared to the U.S where drilling is concerned.
Meanwhile, with regard to the company’s drilling rates, Eifler said these are likely to increase by next year. Offshore Magazine highlighted the fact that in March 2020, day rates for drill ships climbed to about US$500,000 daily and asked the CEO whether the drilling market is still hot or cooling off.
To this end, Eifler said, “The reality is that 2025 will be slightly slower than we had hoped, call it a year ago, which I think is easily explained by oil prices. There’s a slightly lower spot pricing, and if you look out to the middle of the forward curve, slightly lower but my optimism about the future is as high as it’s ever been, all of our forward indicators for growth are very strong.”
Despite the short-term lull, Noble’s CEO indicated that the company has observed Final Investment Decisions (FIDs) being taken at a very high pace while other types of services like subsea trees and Floating Production Storage and Offloading vessels (FPSOs) point to a healthy backlog of work that would eventually move into drilling services.
Consequently, the CEO said, “So think today, rates are probably (or) have been flat for a little while. They went to the five hundreds, as you indicated, and you know, perhaps they’re maybe high four hundreds right now, but we definitely see enough work in 2026 and then 2027 and beyond that would suggest that perhaps there’s room to get back into the five hundreds and perhaps a little higher from there.”
According to Noble Corporation’s February 2025 Fleet Report, four drill ships are deployed in Guyana. These include the Noble Tom Madden, Noble Sam Croft, Noble Don Taylor and Noble Bob Douglas.
Kaieteur News understands that the contract for these vessels will remain in effect until August 2028, and are subject to “market-based” pricing. Last week this newspaper reported that ExxonMobil Guyana Limited (EMGL), the operator of the oil-rich Stabroek Block, has commenced what the company has described as its “busiest year yet”, with simultaneous developmental drilling operations ongoing at three projects.
According to notices published by the Maritime Administration Department (MARAD), the oil giant has developmental drilling operations ongoing at the Yellowtail, Uaru, and Whiptail projects – the fourth, fifth, and sixth developments, respectively.
Developmental drilling is an activity conducted following successful exploration drilling. It is conducted to develop a field with proven reserves. At a press conference in January, President of EMGL, Alistair Routledge told reporters, “Here in Guyana, we have started what is going to be our busiest year yet for SURF installation and associated activities- so SURF being the subsea umbilicals, risers (and) flow lines that are necessary to connect the subsea well heads to the FPSOs, to enable us to take production from the production wells, but also to inject water and gas into the reservoirs.”
(‘Guyana is the best offshore play in the world presently’)
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