Noble Completes Acquisition of Diamond Offshore Drilling Ahead of Schedule

Noble is assembling the largest fleet of 7G drillships as it targets deepwater contracts (Noble)

Noble Corporation closed on the acquisition of Diamond Offshore Drilling on September 4 several months ahead of the anticipated timeline for the transaction. Combined the companies report they have created the largest fleet of 7th generation dual-BOP drillships in the industry.

"We are excited to close this highly strategic and accretive transaction ahead of schedule and commence our integration activities,” said Robert W. Eifler, President and Chief Executive Officer of Noble.

The company points to significant advantages in the combination as it continues to also drive the consolidation of the sector. It is adding approximately $2 billion of backlog and strengthening its position in the deepwater segment of the industry.

After the combination, they released a new fleet status report that detailing 15 7G drillships as well as four 6G drillships. They are also operating nine semisubmersibles and 13 jackups.

"This combination marks a crucial next step in Noble's 7G deepwater leadership strategy,” added Charles Sledge, Noble's Chairman of the Board of Directors. “We are excited to bring Diamond's exceptional team and fleet on to the Noble platform and look forward to delivering valuable synergies for all stakeholders through the integration of these two great companies.”

In addition to the addition of Diamond Offshore Drilling, Noble also highlighted the addition of 4.8 rig years of backlog recently awarded under the Commercial Enabling Agreement (CEA) with ExxonMobil for the Company's four drillships operating in Guyana. These updates increase Noble's current backlog to $6.7 billion.

Noble, which through its predecessors reports it has been engaged in the contract drilling of oil and gas wells since 1921, announced the agreement to acquire Diamond Offshore in June anticipating the deal would be completed by early 2025. Since emerging from bankruptcy, Noble has been moving forward with its strategy. In 2021 it acquired Pacific Drilling and in 2022 it merged with Maersk Drilling. APMH, a Maersk investment company, remains the holder of 17.35 percent of Noble’s shares after the completion of this largest deal.

Analysts point out that Noble is focusing its strategy on going after the biggest offshore oil contractors around the world. The transactions have given Noble some of the newest deepwater rigs in the industry and an expanded deepwater capacity.