Paragon Offshore’s Operating Profile

Paragon Offshore was created to be the leading standard specification drilling company in the industry. We own a fleet of 40 Mobile Offshore Drilling Units (MODUs) and conduct contract labor operations on the Hibernia Platform offshore eastern Canada.

We operate for some of the largest oil and gas companies in the world, including National Oil Companies like Petrobras (Brazil), Pemex (Mexico), and ONGC (India). We also have customers like ExxonMobil and Total, who are among the largest major oil companies, and Centrica, Gaz de France, and Wintershall, some of the world’s most active independent oil companies. In all, Paragon provides services to more than 17 different customers in 12 countries on five continents.

In addition to our Houston headquarters, Paragon Offshore has a strong local presence in the regions in which we operate through our division structure. These include the:

  • Brazil Division
  • Canada Division
  • Europe and Africa Division
  • Mexico Division
  • Middle East and Far East Division

Our Rig Fleet

Paragon operates a fleet of “standard specification” drilling units. We classify rigs as standard specification vs. “high specification” based on a number of factors, including age, technological capabilities, size, water depth and load capacity. Standard specification rigs are generally 15 or more years old, have a “hook load,” or derrick hoisting capacity, of less than two million pounds, and have drilling equipment operated by mechanical, rather than electronic, means.

Standard specification rigs operate in the same worldwide markets and environments as high specification rigs, subject to their technical capabilities. Our fleet includes the following rig types:

Jackups (34)

Jackup rigs are mobile, bottom-supported, self-elevating drilling platforms that stand on three or four legs on the seabed. When a jackup rig moves from one location to another, it lowers its platform down on the water until it floats, and is towed by a supply vessel or similar watercraft to its next location, where it lowers its legs to the sea bottom and elevates its platform above sea level. Most jackup rigs, including all of the jackup rigs owned by us, are “ILCs.” This means they have the ability to move each leg independently and to move their drill floors aft of their own hulls (Cantilever), so that multiple wells can be drilled at open water locations or over wellhead platforms without re-positioning the rig. This improves the flexibility of our operations and gives our customers added benefits. Our standard specification jackups are generally capable of operating in water depths of up to 390 feet. Our jackups provide drilling services in shallow water with capabilities up to a maximum water depth of 390 feet. Nine of our jackups are also capable of operations in harsh environments, which typically command higher dayrates than operations conducted in other environments.

Drillships (4)

Drillships are ships with on-board propulsion machinery, often constructed for drilling in deepwater and ultra-deepwater. They are based on conventional ship hulls, but have certain modifications. Drilling operations are conducted through openings in the hull, or “moon pools.” Drillships normally have a higher load capacity, which is the ability to carry materials, than semisubmersible rigs and are well suited to offshore drilling in remote areas due to their mobility and high load capacity. Drillships can be equipped with a conventional mooring system or a computerized dynamic positioning system, or DP system, which automatically maintains a vessel’s position and heading by using the DP system’s thrusters. Four of Paragon’s drillships are dynamically positioned, while one is moored. Our rigs are capable of operating in water depths of up to 7,200 feet depending on the design. We refer to drillships as "floaters".

Semisubmersibles (2)

Semisubmersible rigs are floating platforms with columns and pontoons featuring a ballasting system, which allows these rigs to be submerged to a predetermined depth so that a substantial portion of the hull is below the water surface during drilling operations. Semisubmersible rigs maintain their position above the wellhead either by means of a conventional mooring system, consisting of anchors and chains or cables, or by a DP system. Paragon’s semisubmersible rigs are all moored and are capable of operating in water depths of up to 4,000 feet depending on the design. We refer to semisubmersibles as "semis" or "floater".

Why Paragon?

What are the key strengths and advantages that will enable us to execute our business strategies? We believe they include:

  • Significant scale, size and expertise: As one of the largest providers in the industry, our global operations enable us to enjoy benefits of scale and size other drilling contractors don’t.
  • High-quality, cost-effective fleet of rigs: We own and operate some of the highest quality standard assets in the world. Just ask our customers! Our predecessor company, Noble, spent nearly $2 billion on this fleet of assets since January 2010, from which we derive significant benefit.
  • Strong backlog coupled with a well-established customer base and diverse standard specification fleet: Paragon has a multi-year backlog that extends out into 2017. We are well positioned in our operating regions with strong and well-established customer relationships that will help to secure future work for our assets.
  • Strong Safety Record: Nothing is more important to us than the safety of our employees, our contractors, our customers, and the environment. We have a long history as an industry leader in safe operations. For example, in 2014, our Total Recordable Incident Rate was almost 25% better than the IADC composite.