Noble Corporation. Middle East Overview. Charlie Yester VP and Division Manager, Middle East. Kurt Hoffman VP, Worldwide Marketing

Transcription

1 Noble Corporation Middle East Overview Charlie Yester VP and Division Manager, Middle East Kurt Hoffman VP, Worldwide Marketing Lee Ahlstrom VP, Investor Relations and Planning UBS 007 Global Oil and Gas Conference Dubai, United Arab Emirates September 6, 007

2 Forward Looking Statement This presentation contains forward-looking statements about our business, financial performance and prospects. Statements about our plans, intentions, expectations, beliefs, estimates, predictions or similar expressions for the future are forward-looking statements. We cannot assure you that the outcomes of these forward-looking statements will be realized. Various factors could cause actual results to differ materially. We discuss these factors, including risks and uncertainties, from time to time in our SEC filings. The Company disclaims any duty to update the information presented here. The material presented is copyrighted by the Company and cannot be printed, recorded or rebroadcast without our express written consent. We have attached a reconciliation to GAAP of any non-gaap measures appearing in this presentation. Additional information about Noble Corporation is available on our website at

3 Agenda Introduction to Noble History of Noble s Middle East / India Operations Middle East Market Analysis Qatar UAE Saudi Arabia India Market Analysis Opportunities and Risks Key Challenges 007 and Beyond Questions and Answers 1 Noble s Global Market Position $ 4,586MM Total Assets $,100MM Operating Revenues Stock*: $33.87 to $ Semisubmersible 3 Jackup Submersible Drillship * Split-adjusted 3 4 1

4 Fleet Contract Position Noble s Fleet Is In High Demand Percentage of Noble Rigs Contracted 100% 75 Semi s Drillships Jackups Source: Noble Current total contract backlog > $ 7.3 billion 5 6 Noble s International Strategy Focusing on the Right Customers 6% 3% Source: Noble 007 E Drilling Revenue Large Cap Non-NOC Large Cap For NOC Small Cap 16% NOCs 35% National Oil Companies (NOCs) control more than 75% of the world s oil and gas reserves Economic and activity drivers differ from Major Oil Companies and Independent Oil Companies Noble has strategically targeted National Oil Companies as customers Key customers are PEMEX (10 jackups) and Petrobras (5 floaters) Large Cap customers predominantly involved in deepwater activities (Shell) or working with NOCs (ExxonMobil, Chevron) * Large Cap companies: Market Capital > $4 billion; Small Cap companies: Market Capital < $4 billion 7 8

5 Record High Margins Margin, Not Dayrate, Drives Results Pre-Tax Contract Drilling Margin 70% Noble Peer Peer Peer Peer Peer Q 007 Q 007 Source: 10-k filings; Peers include DO, ESV, GSF, RDC, RIG 9 10 Organic Earnings Growth E 008 E 009 E 010 E Noble Clyde Boudreaux $.05 $.09 $.9 $.43 Noble Roger Lewis Noble Hans Deul Noble Dave Beard Noble Danny Adkins Noble Scott Marks Noble Jim Day.46 Total Earnings per Share Source: Noble, EPS Split-adjusted Current contract $.07 $.1 $.95 $ 1.85 Rollovers at current market dayrate

6 Delivering on Expectations Earnings per Share (updated for stock split) $1.60 Actual 1.40 Consensus 1.0 CAGR = 16% We continue to meet and exceed The Street s expectations The key is simple: Say what you re going to do and then do it! 1Q 06 Q 06 3Q 06 4Q 06 1Q 07 Q 07 3Q 07* 4Q 07* *Source: First Call, Results split-adjusted History of Noble Middle East & India Noble has operated in India continuously since the Noble Ed Holt arrived in Noble started in the Middle East with a labor contract for QGPC (now Qatar Petroleum - QP) in Noble has increased our Middle East fleet to 15 jackups by moving 3 rigs from other Noble Divisions, acquiring 3 rigs from Schlumberger, rigs from Maersk, 5 single rig purchases, the formation of 1 Joint Venture, and the construction of the Noble Roger Lewis. In 007, the Middle East Division is expected to contribute ~19% of the Company s Contract Drilling Service Revenue. The work in the Middle East is in two categories developing and sustaining production from existing oilfields and development of the Qatar North Field gas deposits for use in LNG and GTL projects

7 Noble- Middle East NDT NDF NKD NCS NMB NCvD NCC NGH NHD ASAY SHIPYARD BAHRAIN NGA NGM NDII NRR NRL NJP MIS SHIPYARD LAMPRELL SHIPYARD DUBAI DRYDOCKS ADYARD ABU DHABI Oil Gas Middle East Market Analysis Qatar Qatar Petroleum State-owned with exclusive rights to exploration and production in Qatar. Operator of three oil fields in Qatar (1 onshore, Offshore) Major shareholders in North Field gas development projects QatarGas I - Total, Kogas QatarGas II - ExxonMobil QatarGas III ConocoPhillips QatarGas IV - Shell RasGas ExxonMobil Major shareholders in oilfield development in Qatar Maersk Oil Al Shaheen Field Occidental IS and Al Rayyan Fields Total E&P Al Khalij Field

8 Qatar Situation Map 1 Middle East Market Analysis Qatar Known Exploration in Qatar Anadarko Operator of Exploration Blocks 4 & 13 Talisman Operator of Exploration Block 10 Wintershall Operator of Exploration Block 11 ONGC Videsh Operator of Exploration Block 8 (NN Prospect) 3 4 6

9 Middle East Market Analysis Qatar North Field World s Largest Deposit of Unassociated Natural Gas Covers an area of over 500 square miles Qatar has the World s third largest reserves of Natural Gas Russian and Iran are 1 st and nd in natural gas reserves Proven reserves in Qatar are 910 Trillion cubic feet Gas Production in 004 (est.) - 1. Tcf NGL production in ,000 bpd LNG production capacity will be.88 Tcf / year when all present Trains under construction are completed. The Dolphin Project will export 730 Bcf per year to the UAE 5 6 Middle East Market Analysis Qatar North Field North Field Gas Development RasGas (LNG) Operates for most QP related North Field developments Will operate 5 9 jackups for 3-4 years (or longer) QatarGas III & IV ConocoPhillips and Shell (LNG) Development program commenced in 006 Three rigs for - 3 years each Shell Pearl GTL Project GTL Project Two rigs required in late 006 early 007 Dolphin Energy (Total, OXY, Government of Abu Dhabi) Supply of BCF per day of natural gas to the UAE Drilling Program ( wells) completed in

10 Umm Al Garse 1 Ras Umm Hasa 1A Qatar Marine B 1 Ras Qirtas 1 QME 1 Matbakh UISE 1 NWD-1 QMD-1A NF 1 NFR-3 NWD-3 NWD- NWD 4 NWD-5 NFQ9-1 NFQ10-1 NFQ7- NFQ8-1 NFS1-1 NWD-6 NFR-1 NFR-4 NFQ5-1 NFD- NFS-1 NFR- NFQ7-1 NFD-1B NHA-3ST NFQ-1 Middle East Market Analysis Qatar North Field RLD RLA NFA RLB NFB QGB RLC QGA DEL QG3/4 Pearl GTL Ras Laffan QATAR North Field Qatar 0 Kilometers 0 Miles N 9 30 Middle East Market Analysis United Arab Emirates Abu Dhabi National Oil Company (ADNOC) State-owned with exclusive rights to exploration and production in Abu Dhabi, UAE ADMA-OPCO and ZADCO are the two major offshore operating companies Major international partner in ADMA-OPCO is BP Major international partner in ZADCO is ExxonMobil Total Operator of ABK Field (Abu Dhabi) Bunduq Operator of one field in Abu Dhabi Abu Dhabi Oil Company (ADOC) Operator of Mubarraz Field in Abu Dhabi Dubai Petroleum Establishment (DPE) Previously DPC (COP, Total, others & the Government of Dubai) 1 April 007 all assets reverted to the Government of Dubai DPE was formed to manage the offshore assets of Dubai Operates 4 fields offshore Dubai (Falah, Fateh, SW Fateh, Rashid)

11 Middle East Market Analysis Kingdom of Saudi Arabia Saudi Aramco The only Operator in the Kingdom of Saudi Arabia (KSA) Currently 4 offshore jackup drilling and workover rigs operating in KSA Presently Aramco is out to bid for 3 5 additional jackups to start in 008 Incremental jackup requirements are expected to be tendered in 008 Al-Khafji Joint Operations Operates in the Neutral Zone between Saudi Arabia and Kuwait, is a JV between the Oil Companies of the two countries Presently operating jackup rigs Bidding to add two high specification jackups in 008 / Jackup Rig Distribution in Middle East Arabian Gulf (Excluding Iran) Number of Rigs by Country Total Jackup Rigs = Number of Rigs by Water Depth >350 <= Rig Status 4 11 UAE Qatar Saudi Arabia Noble Rigs Source: Rigzone, 9/13/007 1 Bahrain Operating 64 Other Under Construction Ready Stacked

12 Competitor Fleet Arabian Gulf Contractors Operating in the Arabian Gulf # of Rigs Noble National Drilling Company of Abu Dhabi ENSCO Rowan GlobalSantaFe Nabors Gulf Drilling Int. (QP / JDC Joint Venture) Arabian Drilling Company Thule Drilling (Under construction/yard bankrupt) Pride 16 Others (5 with each, 8 with 1 each) TOTAL Source: Rigzone, 9/13/ Dayrate Comparison Middle East- Premium ILC Jackups ($000 s) ENSCO GSF Rowan Noble Dayrates are averages of each company s market segment, excludes units in Iran

13 India Market Analysis ONGC was the only major offshore operator until recently International and Indian Companies now participate in E&P Cairn Energy Reliance GSPC (Indian state oil company) British Gas OAO Gazprom Deepwater exploration program has yielded mixed results for ONGC but several discoveries have been made by Reliance and GSPC ONGC s participation in Iran has drawn rigs from India creating more demand in the India drilling market 41 4 Rig Distribution in India Jackups and Deepwater Number of Rigs by Country Noble Rigs Total Jackup Rigs = 36 Total Deepwater Rigs = Jackups < 300' Jackups 300' Jackups > 300' Drillships <5000' Drillships > 5000 Semisubs Source: Rigzone, 9/13/

14 Competitor Fleet India Contractors Operating Jackups in India # of Rigs ONGC 8 Transocean 8 Aban Lloyd 4 Noble ENSCO Pride Essar Oilfield Services Great Offshore 8 Others (1 each) 6 TOTAL 36 Contractors Operating Deepwater Rigs in India # of Rigs Transocean ONGC Aban Lloyd Essar Oilfield Services Neptune Marine Source: Rigzone, 9/13/007 TOTAL Dayrate Comparison India - Premium ILC Jackups ($000 s) Dayrates are averages of each company s market segment Noble Pride Transocean Ensco Atwood Aban Loyd

15 Middle East & India Market Analysis Opportunities Continued development of the Qatar North Field will present long term opportunities for jackup utilization Oil producing fields will continue to require jackup rigs for workover, sidetrack and re-completion Additional rig requirements in Saudi Arabia, Kuwait, UAE, and Oman Increased demand in Iran may create opportunities elsewhere as rigs that are able to will move to Iran if political hurdles are removed Increased activity in India Acquisition of speculative units at attractive prices Middle East & India Market Analysis Potential Risks The Middle East is looked upon as a stable long term market and competition will continue to be robust from existing local and international drilling contractors as well as newly formed contractors The increased activity in the region has caused shortages of qualified personnel which in turn has caused delays and operating issues for new entrants Perception in the industry that the Middle East has an inexhaustible demand for rigs, which leads to speculative new builds in the area and movement of rigs into the area from other markets Longer times from the date of rig release to startup of a new contract could cause some additional downtime Continued upward pressure on operating costs from supply cost increases, competition for labor and increased costs of services (boats, shipyards etc.)

16 Noble s Middle East Fleet Noble Dick Favor Noble s Middle East Fleet Noble Chuck Syring

17 Noble s Middle East Fleet Noble Roy Rhodes Noble s Middle East Fleet Noble David Tinsley

18 Noble s Latest Addition Noble Roger Lewis 61 6 Key Challenges 007 and Beyond Middle East and India Division Sustain high level of safety awareness and performance Minimize increases in daily operating costs Recruit and retain quality personnel Maintain our current contracting strategy to achieve the best financial results possible Continue efficient shipyard project management Continue our long term Strategy of asset relocation and upgrades for the most efficient use of cash and placement of rigs for future growth India Southeast Asia (Indonesia, Malaysia) Australia Far East (China, Vietnam, Thailand)

19 Noble Corporation Noble Corporation South Dairy Ashford Suite 800 Sugar Land, Texas Investor contact: Lee M. Ahlstrom Vice President IR & Planning