Offshore rig contractor Noble is to spin off about half its fleet into a separate company as it increases focus on its higher-priced rigs working in deeper waters.
The newly created company will own 45 vessels, including 34 shallow-water rigs
The company said its initial public offering of as much as 20 percent of the new company’s shares may precede a tax-free distribution of the new stock to existing Noble investors.
Companies have been pushing into deeper waters and harsher environments as old oil discoveries play out and new supplies become more difficult to find. The global industry is in the midst of the fattest pipeline of orders for new deep-water rigs since the advent of deep-water drilling in the 1970s, according to IHS Petrodata.
“The purpose of the separation is for Noble to move forward with our development as a robust high-specification and deepwater drilling company through continued execution of newbuilds and fleet enhancements,” said Noble chief executive David Williams.
The spinoff, which has been previously been mooted in recent years, will be completed by the end of next year, if Noble gets a tax ruling from the internal revenue service.
The move will leave Noble will 35 rigs, with nine currently being constructed.
Last year’s 52 ultra-deepwater discoveries around the world, in about 7,500 feet of water or greater, made for a record year in the offshore industry, Williams told analysts and investors in a presentation earlier this year.
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