Rig Auction

The Noram 253 is the first Gulf of Mexico casualty of the 98/99 low oil price environment. EnSerCo, an Enron Capital JV company, and first preferred mortgage holder, elected not to renegotiate loan terms with Noram (USA), Inc., the rig owner. Instead they moved quickly and quietly to foreclose. The rig is a 1979 built Bethlehem JU 250 MS, originally owned by Brazilian contractor, Montreal Drilling and then known as Montreal III. In the late eighties the rig was purchased by a Norwegian KS company, renamed the Mosrig I, bareboat chartered to Odebrecht and then declared a total loss following a harbor collision with another jackup. Noram purchased the rig and spent $16 million on its refurbishment. The Noram 253 is stacked in Galveston and will be sold to the highest bidder on Friday, February 19th at the Federal Marshall’s office in Galveston, Texas at 9:30 a.m.