With a mid-2022 deadline eyed for the finalisation of the merger between Noble Corporation and Maersk Drilling, Noble may soon sell five of its rigs for the deal to go through.
Providing an update on the merger, Maersk and Noble said recently that the United Kingdom Competition and Markets Authority (UK CMA) made a determination during a “Phase 1” review that the deal would essentially lead to the substantial lessening of competition in the supply of jack-up rigs in Northwest Europe (NW Europe) – excluding Norway.
In such cases, the regulator would launch an in-depth “Phase 2” assessment or offer the parties to modify aspects of the proposed merger.
At UK CMA’s request, “Remedy Proposals” were designed to replicate the competitive constraint provided by Noble relating to jack-up rigs in NW Europe by the divestment of certain jack-up rigs to a suitable purchaser.
“… this one Remedy Proposal comprises the divestment of the rigs Noble Hans Deul, Noble Sam Hartley, Noble Sam Turner, Noble Houston Colbert, and Noble Lloyd Noble (the “Remedy Rigs”) including all the related support and infrastructure that the purchaser will need to run the Remedy Rigs as an effective standalone business,” Maersk and Noble said in the update.
All relevant off-shore and on-shore employees are expected to transfer with the Remedy Rigs.
Maersk and Noble are expected to reach an agreement with a potential purchaser for the Remedy Rigs; one that must be considered “suitable” by the UK CMA.
The UK CMA would then review the terms outlined in the Remedy Proposal; a duration for this is uncertain, the companies said but the mid-2022 deadline for the finalisation of the merger remains at the forefront.
Both Maersk and Noble said the financial and strategic rationale underpinning the merger remains compelling for all stakeholders irrespective of the divestment of the Remedy Rigs. No changes are expected to be made to the estimated annual run-rate cost synergies goal nor the exchange ratio agreed for purposes of the merger, the companies noted.
Noble Corporation and Maersk Drilling kick-started the merger back in November 2021, to create a combined company that will own and operate a modern, high-end fleet of floaters and jack-up rigs across benign and harsh environments, serving customers in the most attractive offshore oil and gas basins.
Noble is a leading offshore drilling contractor for the oil and gas industry. It has a fleet of 19 offshore drilling units, consisting of 11 drillships and eight jackups, focused largely on ultra-deepwater and high specification jackup drilling opportunities. Currently, it is the company with the most drillships operating in Guyana’s Stabroek Block.
And Maersk Drilling provides responsible drilling services to energy companies worldwide; it owns and operates a fleet of offshore drilling rigs. and specialises in harsh environments and deepwater operations.
