The offshore rig contractor Noble Corp announced today it is planning to spin off nearly half its fleet into a separate entity in order for the company to focus on its higher end rigs that operate in deeper waters. The new firm would own 45 vessels, which comprises of 34 shallow water rigs.

According to a statement by the Geneva based oil rig contractor, there would be an initial public offer of about 20% of the new company's firm shares to proceed the tax free distribution of new shares of stock to the existing investors in Noble. 

The move is designed to respond to the current conditions of oil wells drying up and seeking new oil deposits are becoming more difficut to find. Thus, according to data from IHS Petrodata, there is a global increase in demand for orders of deep water rigs since deep water drilling became vogue in the 1970s.

According to Noble Corp CEO David Williams through a statement, "The purpose of the separation for Noble to move forward with our development as a robust high-specificaton and deepwater drilling company through continued execution of newbuilds and fleet enhancements."