#United States #Houston #Borr Drilling #Noble Corporation #Jackup Rigs

Noble Corporation's Strategic Shift: Selling Six Jackup Rigs

In a significant move aimed at refining its operational focus, Noble Corporation plc (NYSE: NE) recently announced its intent to divest six jackup rigs. This decision underscores the company’s strategic shift towards becoming a pureplay deepwater and ultra-harsh environment operator. The announcement came on December 8, 2025, signaling a pivotal moment for the organization as it works to sculpt its future direction.

The divestment involves two separate transactions. Firstly, five rigs will be sold to Borr Drilling Limited (NYSE: BORR) for a total of $360 million. The rigs included in this deal are the Noble Tom Prosser, Noble Mick O'Brien, Noble Regina Allen, Noble Resilient, and Noble Resolute. In a subsequent agreement, the Noble Resolve will be sold to Ocean Oilfield Drilling for $64 million. These transactions, which are expected to close in early 2026, hinge on traditional closing factors that must be satisfied prior to their completion.

Financial Implications

Robert W. Eifler, Noble’s President and CEO, expressed optimism regarding these transactions, indicating they are likely to be immediately accretive to shareholders based on the company's trailing 2025 EBITDA and anticipated 2026 Free Cash Flow. This outlook not only reflects the company’s financial strategy but also illustrates how these sales will enhance its balance sheet and focus on core operations within the deepwater and ultra-harsh jackup segments.

The transaction with Borr comprises $210 million in cash alongside $150 million in seller notes, which have a proposed six-year maturity. These notes will be secured with a first lien on three of the sold jackups, enabling a flexible financial structure allowing for prepayment without penalties under specific conditions. Furthermore, Noble intends to continue operating the Noble Mick O'Brien and Noble Resolute rigs under a bareboat charter agreement for one year following the signing of the definitive agreement with Borr.

Future Prospects and Operations

As part of these transitions, Noble's leadership has identified a clear pathway forward. With the planned divestment, the company aims to concentrate operations in deepwater drilling, where it can leverage its state-of-the-art fleet and technical capabilities. Noble, having engaged in contract drilling for oil and gas since 1921, is well-positioned to navigate this evolving landscape.

Noble Corporation’s CEO, Robert W. Eifler, remarked, “I would like to extend my gratitude to the dedicated Noble crews and support teams who have consistently delivered exceptional service on these rigs. Their hard work and professionalism have been crucial to our success, and I wish them all the best in future campaigns.” This sentiment reflects a commitment to not only future business success but also to the personnel that have contributed to the company's achievements.

Looking Ahead

As Noble Corporation prepares for the completion of these sales, stakeholders can anticipate a renewed focus on deepwater drilling opportunities in both established and new markets worldwide. This strategic pivot may set the stage for a revitalized competitive edge in the offshore drilling industry, reaffirming Noble’s status as a leading contractor in the market. The forthcoming transitions and operational adjustments mark a significant era for the company, building upon a legacy of innovation and excellence.

To learn more about Noble Corporation and its advancements, stakeholders are encouraged to visit their official website at www.noblecorp.com.

As these developments unfold, the market will undoubtedly be watching closely to see how Noble navigates this latest chapter in its storied history, further solidifying its role within the complexities of the offshore drilling sector.