The asset purchase agreement with Shelf Drilling includes the Noble Hans Deul, Noble Sam Hartley, Noble Sam Turner, Noble Houston Colbert (pictured) and Noble Lloyd Noble rigs and all related support and infrastructure. (Source: Noble Corp.)
Noble Corp. entered into an asset purchase agreement to divest five jackup rigs for $375 million to a newly formed subsidiary of Shelf Drilling Ltd.
The rig divestment, subject to approval of the U.K. Competition and Markets Authority (CMA), aims to address potential “issues related to lessening of competition created by the business combination” between Noble and The Drilling Co. of 1972 A/S (Maersk Drilling) initially announced November 2021, Noble said in a June 23 press statement.
The closing of the business combination of Noble and Maersk Drilling is slated to occur near the end of the third quarter, according to Noble. The rig agreement could close promptly following such closing, the offshore drilling contractor added.
Shelf and its subsidiary, Shelf Drilling (North Sea) Ltd., plan to use a combination of equity and debt financing to fund the acquisition, but the purchase is not conditioned on such financings, Noble said. All obligations related to the purchase will be guaranteed by Shelf.
Shelf’s subsidiary has already paid a deposit of $37.5 million under the purchase agreement. Shelf contemplates raising equity proceeds of $130 million-$150 million combined with senior secured financing of $200 million-$225 million to fund the purchase, the Norwegian shallow-water offshore drilling contractor said June 23 in a separate press statement.
Noble Rigs
The asset purchase agreement includes the Noble Hans Deul, Noble Sam Hartley, Noble Sam Turner, Noble Houston Colbert and Noble Lloyd Noble rigs and all related support and infrastructure. All the associated onshore and offshore staff is expected to transfer with the rigs.
Following the divestment, Noble looks to continue to perform the current drilling program for the Noble Lloyd Noble under a bareboat charter arrangement with Shelf until second-quarter 2023 when the initial term of its current drilling contract is expected to terminate, Noble said.
Recommended Reading
FERC Closes Out ’24 with Rulings to Boost LNG Supply
2025-01-02 - A trio of Federal Energy Regulatory Commission authorizations in the latter half of December allowed new LNG trains to begin operations or boosted gas supplies to the facilities.
Microseismic Tech Breaks New Ground in CO2 Storage
2025-01-02 - Microseismic technology has proved its value in unconventional wells, and new applications could enable monitoring of sequestered CO2 and facilitate geothermal energy extraction.
Carbon TerraVault Receives California’s First Class VI Permits from EPA
2024-12-31 - The Environmental Protection Agency granted California Resources Corp.’s Carbon TerraVault Class VI well permits for the underground injection and storage of CO2.
EQT Closes $1.25B Non-Op Appalachia Divesture to Equinor
2024-12-31 - EQT Corp. said the proceeds of the sale to Equinor were used to repay outstanding borrowings under its revolving credit facility related to its acquisition of Equitrans Midstream Corp.
Mobile Pipeline Maker Hexagon Agility Receives $11.2M Order
2024-12-31 - Hexagon Agility says an oilfield service company is planning on converting its well-completion equipment fleet from diesel to natural gas.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.