Noble says the ultra-deepwater (UDW) drillships Noble Sam Croft and Noble Tom Madden (both built 2014), which had contracts until 2017, will be terminated.
Freeport is to pay a $540m termination fee upfront and potential payments of up to $75m, depending on the average price of oil over the next 12 months.
Freeport can make payments through a combination of cash, company shares or up to $200m in near-term Noble bonds, although the mix is unknown.
“Given
