Shell plc SHEL recently awarded a major contract to offshore drilling giant Noble Corporation plc NE for its 2009-built semisubmersible rig, Noble Developer. The $70 million contract value is inclusive of the mobilization and demobilization of the rig and will make the rig available for a fixed period of 180 days. The Noble Developer will start operating for Shell in the third quarter of 2026 after completing its contract with Petronas.

An Overview of Noble Developer

Noble Developer is a DSS-21 column-stabilized and dynamically positioned semi-submersible rig capable of operating in water depths of around 10,000 feet. The maximum drilling depth of this rig is around 40,000 feet. The Noble Developer drillship has previously worked for Shell, currently carrying a Zacks Rank #3 (Hold), in Brazil in 2023 at a rate of around $411,000 per day. Although the day rate of the new deal ($390,000 per day) is slightly below the previous one, Noble Corporation is looking forward to a steady workflow.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Noble Developer’s Commitments Before SHEL’s Deal

Before commencing work for Shell, the Noble semi-submersiblerig will discharge a contract with Petronas. The contract involves drilling three wells offshore of Suriname. The $84 million contract is expected to begin in June 2025 and last about 200 days.

Noble Corporation recently announced its divestiture plan to retire two cold-stacked drillships, Pacific Scirocco and Pacific Meltem. These rigs have been inactive for years, with the former last operational in 2017 and the latter in 2020. This move signifies Noble’s commitment todelivering great resultswith a focus on safety and efficiency.

Key Picks

Investors interested in the energy sector might look at some top-ranked stocks like SM Energy Company SM and Sunoco LP SUN.

Denver, CO-based SM Energy Company is an independent oil and gas company engaged in the exploration, exploitation, development, acquisition and production of natural gas and crude oil in North America. The Zacks Consensus Estimate for SM’s 2024 earnings indicates 15.11% year-over-year growth.

Dallas, TX-based Sunoco LP is a master limited partnership that deals with the distribution of motor fuel to roughly 10,000 customers, including independent dealers, commercial customers, convenience stores and distributors. The Zacks Consensus Estimate for SUN’s 2024 earnings indicates 184.11% year-over-year growth.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Noble Corporation PLC (NE) : Free Stock Analysis Report

Sunoco LP (SUN) : Free Stock Analysis Report

SM Energy Company (SM) : Free Stock Analysis Report

Shell PLC Unsponsored ADR (SHEL) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research