The merger of Noble Corporation and Maersk Drilling will create the third largest offshore drilling company by fleet size in the world.
Analyst firm Esgian said the deal, set to close in mid-2022, could bring the largest market capitalisation in the industry at as much as $3.4billion, surpassing Valaris at $2.8billion.
It will also see “significant consolidation within both the North Sea jackup and ultra-deepwater floater markets”, which Esgian said it much needed to balance supply and demand.
The firm has spoken repeatedly about the market being oversaturated with supply and not enough work to go around, which hit particularly hard during Covid with several major players entering Chapter 11 bankruptcy.
Esgian estimates the Noble and Maersk Drilling fleets at $2.3billion and $2.25billion valuations respectively, well balanced with almost the same number of rigs and comparable fleet values.
The “new Noble” will own a good mix of modern rigs, and “has the potential to own one of the highest value fleets in the world”.
Most of the Maersk Drilling fleet is tied up in harsh environment jackups working in the North Sea, while Noble Corp has a large fleet of 7th generation drillships.
Esgian said: “The merger of Noble Corp and Maersk Drilling will position the new entity as one of the largest players in the market.
“Now that the offshore rig market has begun a new recovery, with demand and utilisation already increasing on the back of higher and more stable oil prices, the New Noble Corp. will be well positioned amongst its peers to take full advantage of the start in the new upcycle.”
Noble Corporation and Maersk Drilling confirmed the merger on Wednesday.
Both firms said it was too early to give specifics about the implications for the workforce, but said there would be
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