Cook continued, “With this deal, more than 60% of total floater backlog is with four drilling contractors. While we believe this will have little impact on day rates in the shorter term, we do believe that the consolidation of the market will afford rig contractors more control in the medium and long term. With day rates currently reaching US$500 000/day, this will be an ongoing concern for operators adhering to capital discipline and planning for long-term drilling programmes.”
Other notable highlights from the deal:
• Affords Noble first mover advantage in a market Wood Mackenzie expects to further consolidate
• It positions Noble in the most commercially advantageous markets
• Leverages economies of scale
• Provides a good cultural fit
• Broadens client footprint, improves access to UK and Australian markets, and strengthens Noble’s competitive position in the lucrative US Gulf of Mexico market
• Diversifies the company’s portfolio without dilution of marketability of assets
If expected synergies and costs are realised, it will increase effective utilisation and make Noble’s fleet more competitive
