Noble sells four Saudi rigs to ADES

Offshore drilling contractor Noble Corporation has completed the sale of four jack-up rigs to a subsidiary of ADES International Holding.

Noble Joe Knight
Joe Knight; Source: Noble Corporation

The two companies reached an agreement for the sale of four jack-ups for $292 million in August 2021. Noble expects to generate approximately $285 million in cash from the transaction net of fees, expenses, and the settlement of working capital.

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Ownership of the Roger Lewis, Scott Marks, Joe Knight, and Johnny Whitstine as well as employment of the crews have been transferred and the drilling contracts have been novated to ADES. Noble will continue to provide certain customary transition support services for a limited period of time.

According to Noble’s fleet status report from June 2021, all four rigs are under contract with Saudi Aramco in Saudi Arabia. The contracts expire in March 2022, July 2023, October 2022, and April 2022, respectively.

“We are very pleased to have completed this transaction, which further bolsters our already strong balance sheet, is accretive to our shareholders, and supports our sustainable return of capital strategy,” said Robert Eifler, President and CEO of Noble Corporation.

Eifler continued, “Our crews in the Kingdom have delivered excellent safety and operating performance for many years. I would personally like to thank the Noble employees who will transfer to ADES for their professionalism and dedicated service and wish them continued success.”