Noble to buy rival Pacific Drilling

Noble Corp. on Thursday said it plans to acquire rival Pacific Drilling in an all-stock deal, the first major consolidation in the offshore sector during the pandemicdriven oil downturn.

The deal was approved by Luxembourg-based Pacific Drilling’s shareholders, who will receive 16.6 million shares of Noble, or about 24.9 percent of outstanding shares. A vote is not required by shareholders of Sugar Land-based Noble. The transaction could close next month, bringing together two companies that have emerged from bankruptcy within the past three months: Noble on Feb. 8; Pacific on Dec. 31.

“The acquisition of Pacific Drilling will enhance our position in the ultra-deepwater market through the addition of its technologically-advanced ultra-deepwater drillships, which are highly complementary to Noble's existing fleet,” Noble CEO Robert Eifler said in a statement. “By bringing these modern drillships into the Noble fleet, we will be able to better serve the needs of our customers globally and to participate in a wider range of drillship tender ac

tivity.”

Noble’s acquisition of Pacific Drilling is the latest in a wave of consolidation sweeping the energy industry in the wake of the pandemic-driven oil bust. Companies are merging in the hope that combined operations can weather market downturns and energy transition.

Recent deals include ConocoPhillip’s $9.7 billion takeover of Concho Resources, Pioneer Natural Resources’ $4.5 billion purchase of Parsley Energy and Devon Energy’s $2.6 billion acquisition of WPX Energy.

Noble said its acquisition of Pacific Drilling is expected to save the combined company at least $30 million annually by the end of this year, and will allow it to re-enter the West African and Mexican offshore markets as well as strengthen its position in U.S. waters of the Gulf of Mexico.

The combined company also will boast one of the youngest and most technologically advanced fleets, owning and operating 11 drillships, one semi-submersible rig and 12 jackup rigs. Noble plans to dispose of the Pacific Bora and Pacific Mistral rigs after the deal is finalized.

Noble said it doesn't plan to change its board or executive-level management. It will continue to have principal offices in Sugar Land.