Transocean, Noble, Diamond Offshore to benefit from drilling

March 01, 2011

Citigroup believes Transocean (RIG), Noble Corporation (NE) and Diamond Offshore (DO) are positioned to benefit the most from the resumption of Gulf of Mexico deepwater drilling permits. The firm reiterates Buy rating on all three stocks after the BOEMRE approved yesterday the first Gulf of Mexico deepwater drilling permit to Noble Energy (NBL). Citi believes up to 20 of the 35 deepwater rigs currently in the Gulf of Mexico could be drilling by late summer.