Alcoa (AA) Expands Into Oil and Gas Market, Agreeing To Buy IP From Noble Corp (NE)
Alcoa (NYSE: AA) announced that it has reached an agreement with Noble Corporation (NYSE: NE) to buy Noble's intellectual property pertaining to welded aluminum risers used in offshore oil and gas exploration and development.
Noble, a leading drilling contractor, designs and deploys welded aluminum riser systems using Alcoa's advanced extrusions and forgings, including the same highly engineered alloys used by the aerospace industry. Advances in metallurgy and joining technology have made aluminum risers more durable and corrosion resistant. This acquisition enables Alcoa to partner with manufacturers in the oil and gas industry to develop lightweight welded aluminum risers for deepwater applications.
"We see this acquisition as a unique growth opportunity for Alcoa. Lightweight and strength are attracting customers to aluminum risers. We are moving ahead in the value chain, leveraging our aluminum alloy and structural technology to provide innovative solutions to the oil and gas industry," said Mary Zappone, President, Alcoa Oil & Gas.
In addition to the welded aluminum risers, Alcoa is also developing aluminum solutions capable of reducing the weight of a conventional drill ship, platform or other structure, allowing the industry to reach reserves previously thought economically unviable.
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