Noble, Maersk Drilling merger deal wrapped up to create highly specialized offshore drilling fleet
Noble, Maersk Drilling merger : Oil and gas drilling contractor Noble Corporation has completed its merger with Danish drilling rig operator Maersk Drilling to create one of the youngest and highest specification offshore drilling fleets in the world.
The two companies have started operating as a combined entity under the name Noble Corporation from 3 October 2022. The Noble, Maersk Drilling merger deal was announced in November 2021.
With a contract backlog of over $4 billion, the organization is supported by a conservative balance sheet with low leverage and significant liquidity.
Robert Eifler — Noble Corporation President and CEO, commenting on the Noble, Maersk Drilling merger, said: “Today marks an exciting new chapter as we bring together these two exceptional companies. The fundamental industrial logic of the combination is clear and has only grown stronger over the past year, driven by steady improvements in the offshore drilling market and a deeper appreciation of the immense talent across this newly combined team.
“I’d personally like to thank the employees of both companies for their sustained focus on safety, integrity, and service as we have worked through this demanding transaction process. I look forward to supporting this team through a rapid integration as we aim to position Noble Corporation as a new and dynamic leader in offshore drilling.”
Noble, Maersk Drilling merger deal wrapped up to create highly specialized offshore drilling fleet. Photo courtesy of C Morrison from Pixabay.
The combination is expected to create significant operational and financial opportunities for Noble Corporation’s customers, shareholders, and employees.
It is expected to result in annual cost synergies of at least $125 million, which could be realized within two years.
In addition, Noble Corporation is anticipated to generate cash proceeds of $375 million, by completing the previously announced sale of five jackup rigs that include Noble Corporation Hans Deul, Noble Corporation Sam Hartley, Noble Corporation Sam Turner, Noble Corporation Houston Colbert, and Noble Corporation Lloyd Noble Corporation and together called the “Remedy Rigs” to Shelf Drilling on 5th October.
Commenting on the Noble, Maersk Drilling merger, Charles M Sledge — Noble Corporation Chairman of the Board of Directors said: “Today’s combination of Noble Corporation and Maersk Drilling represents a defining moment in the history of offshore drilling. We are excited to join forces with Maersk Drilling’s talented team and embark on this journey together as a combined company.
“I am confident that Noble Corporation is now better positioned to deliver enhanced value to all our customers and shareholders.”