Noble Corp to divest rigs in light of merger

The sale is intended to remedy any concerns identified by UK antitrust regulator the Competition and Markets Authority (CMA) regarding the proposed merger between Noble Corp and Maersk Drilling. The Remedy Rig Sale Agreement includes the rigs Noble Hans Deul, Noble Sam Hartley, Noble Sam Turner, Noble Houston Colbert and Noble Lloyd Noble and all related infrastructure. 

Associated offshore and onshore staff are expected to transfer with the ‘remedy rigs.’ 

Following the sale, Noble Corp expects to continue to perform the current drilling programme for Noble Lloyd Noble under a bareboat charter arrangement with Shelf Drilling until Q2 2023, when the primary term of its current drilling contract is expected to end.  The charter arrangement will pass the economic benefit of the drilling contract to Shelf Drilling. 

Drilling contracts for other rigs are expected to be replaced to the buyer, subject to the clients’ consent, with Noble Corp providing customary transition support services to the buyer for a limited period of time. 

Noble Corp said the remedy rig sale is expected to close promptly after the merger is finalised and following CMA approval.

In May 2022, the CMA published its decision on the proposed merger between Noble Corp and Maersk Drilling and concluded there are reasonable grounds for believing the sale of these remedy rigs might be accepted by the regulator.

The duration and outcome of the CMA review process remains uncertain, but a final decision is expected by 6 July 2022.

Noble Corp reported that if a buyer, the sale agreement and the remedy proposal are accepted by the CMA, the merger could occur near the end of Q3 2022.