Sugar Land-based Noble Drilling is reportedly planning a round of layoffs as it prepares to stack a semi-submersible rig.
According to a letter sent to the Texas Workforce Commission and seen by Rigzone the company will layoff between 120 and 130 employees and stack its Noble Jim Day rig.
The layoffs are slated to start on January 26, 2016 and take about two weeks to complete.
Noble Drilling, a part of the Noble Corporation, told the commission it is still finalizing its plans.
In its letter, Noble said it plans to keep some employees on at the rig’s stacking location.
The company added that it may be able to bring back some employees if the Noble Jim Day wins a new contract, but it anticipates the layoffs will be permanent, Rigzone said.
The Noble Jim Day is of a Bingo 9000 rig design and can operate in water depths of up to 12,000 feet and has a drilling depth of 37,000 feet.
According to Noble’s latest fleet report, the Jim Noble is currently working in the U.S. Gulf of Mexico under contract for Shell.
The rig’s current $543,00 per day contract and is set to expire in early January 2016.