Houston-based Noble Corp. and Denmark’s Maersk Drilling Co. on Wednesday agreed to merge their estimable offshore fleet, comprised of 20 floaters and 19 jackup rigs, in an all-stock merger valued at $3.4 billion. 

Offshore drilling is an expensive undertaking because developments often take years to complete before production is flowing. In addition, moving equipment and manpower to offshore locations in the face of hazardous weather conditions also requires operators to have solid financial resources.

Why Are Noble And Maersk Merging?

Noble CEO Robert W. Eifler, who would helm the combined company, said the two operators have had “many decades of history as leaders in the offshore drilling industry. I look forward to the future as these two great organizations come...