Noble has completed the previously $1.6bn acquisition of rival offshore drilling contractor Diamond Offshore Drilling.
The completion of this acquisition comes after receiving the final necessary regulatory clearance from the Australian Competition and Consumer Commission in late August.
Through the acquisition, Noble aims to strengthen its position as a major player in the offshore drilling market by forming the largest fleet of seventh-generation dual-blowout preventer (BOP) drillships in the industry.
The deal also adds an estimated $2bn to Noble’s backlog.
Following the completion of the transaction, Noble’s board of directors appointed Patrice Douglas as the company’s new director. Previously, Douglas served on Diamond Offshore Drilling’s board.
Noble president and CEO Robert Eifler said: “We are excited to close this highly strategic and accretive transaction ahead of schedule and commence our integration activities. On behalf of Noble’s board of directors and employees, I would like to welcome the Diamond organisation onboard and look forward to our exciting journey ahead as a combined team.”
The acquisition was structured as a combination of stock and cash and was first announced in June 2024.
Under the terms of the agreement, shareholders of Diamond Offshore Drilling, which is publicly traded on the New York Stock Exchange (NYSE), will receive 0.2316 shares of Noble along with a cash payment of $5.65 per share. This arrangement results in Diamond Offshore Drilling’s shareholders holding approximately 14.5% ownership in Noble, which is listed on both the NYSE and the Canadian Securities Exchange (CSE).
Diamond Offshore Drilling specialises in providing contract drilling services to the global energy industry. Prior to the deal, the firm’s asset base included a fleet of 15 offshore drilling rigs, made up of 11 semisubmersibles and four dynamically positioned drillships.
Noble board chairman Charles Sledge said: “This combination marks a crucial next step in Noble’s 7G deepwater leadership strategy. We are excited to bring Diamond’s exceptional team and fleet onto the Noble platform and look forward to delivering valuable synergies for all stakeholders through the integration of these two great companies.”
As per Noble’s latest Fleet Status Report, the company has secured a 4.8-year extension of rig contracts with ExxonMobil in Guyana, extending four drillships’ terms to August 2028.
Following its acquisition of Diamond Offshore Drilling, Noble integrated 10 new floaters into its fleet, which include four drillships and six semisubmersibles. The report also shows contracts such as Noble Valiant’s $470,000 daily rate in the US Gulf of Mexico.
Noble’s expanded fleet includes contract options and potential extensions with clients like Petrobras, Shell, and BP.
