Noble Corp. has closed its $1.59 billion acquisition of Diamond Offshore Drilling, creating the largest fleet of seventh generation drillships at a time in which analysts see the offshore market flattening.

Noble’s cash-and-stock deal, which totals $2 billion including debt, comes as service companies continue to consolidate in an aftershock of widespread upstream M&A.

Noble’s fleet will now include 14 working (15 total) dual BOP 7th generation drillships. It will also add approximately $2 billion of backlog, Noble said in a Sept. 4 press release. 

Noble’s updated fleet status report reflects the addition of Diamond’s rigs and other updates, “chiefly 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.” The updates increase Noble's current backlog to $6.7 billion, the company said.

Noble said it expects to realize annual pre-tax cost synergies of $100 million, with 75% expected to be realized within one year of closing.

Robert W. Eifler, Noble’s president and CEO said the transaction closed ahead of schedule and the companies had started integration.

Noble’s board of directors also appointed Patrice Douglas, an attorney and Diamond board member, as a new director of Noble.

Comments