Noble Corp. has agreed to acquire privately held drilling company FDR Holdings Ltd. for $2.16 billion as it also announced the signing of new contracts with Royal Dutch Shell PLC (RDSA).

FDR, also known as Frontier, is expected to immediately add to Noble's cash flow at a time when a moratorium in the Gulf of Mexico threatens revenue for Noble and other offshore-drilling contractors. The postponement set off several legal battles between contractors and oil companies over who should pay for rigs idled by it. The deal, set to close next month, is expected to boost earnings starting in 2011.
Under the deal, Noble will acquire six floating drilling units and add about $2 billion to its contract backlog.
In the Shell agreement - which was separate but is contingent on the Frontier purchase closing - the oil company signed 10-year contracts for two ultra-deepwater drill ships and a three-year extension on a ship already operating in the Gulf of Mexico.
The companies also agreed to allow Shell to suspend contracts on rigs operating in the Gulf during the drilling ban. In exchange, Shell will pay a reduced suspension rate to support Noble's staff and certain operational costs.
Noble's shares closed Friday at $29.28 and were inactive premarket. The stock is down 6.7% the past year.
(Source: The WSJ)