Atwood Advantage Is Too Expensive For Noble Energy. Ensco May Not Like It - SEEKING ALPHA

Drillship Advantage

Jul. 21, 2017 1:46 AM ET

Summary

• On July 18, 2017, the Leviathan partners and Noble Energy decided to terminate a contract with Atwood Advantage and promote a contract with another drilling rig.
• The Atwood Advantage was working for Noble Energy in Israel at $581K/d until August 2017. So, the loss is limited, but it is still a solid negative.
• This new termination is a wake-up call for Ensco and its shareholders. The acquisition of Atwood seems overvalued and unnecessary at the moment, in my opinion.

The Atwood Advantage is a DP3 Drillship, delivered by DSME in 2013, capable of operating at 3,658 meters (12,000 ft.) of water, drilling depths of up to 12,200 m (40,000 ft.) and has accommodations for 200 personnel.