We typically provide contract drilling services underdesignate an individual contract, on a dayrate basis. Although the final termsto attend meetings of the contracts result from negotiationsBoard and of committees of the Board, subject to customary exceptions and conditions. The Investor Manager has requested that an Investor Director be appointed, and we expect that director to be appointed in the near future.

Generally, our contracts allow us to recover our mobilization and demobilization costs associated with moving a drilling unit from one regional location to another. When market conditions require us to assume these costs, our operating margins are reduced accordingly. For shorter moves, suchserved as “field moves,” our customers have generally agreed to assume the costsManaging Director of moving the unit in the form of a reduced dayrate or “move rate” while the unit is being moved. Under current market conditions, we are much less likely to receive full reimbursement of our mobilization and demobilization costs.

Noble isMoelis & Company, a leading offshore drilling contractor forglobal independent investment bank, where he specialized in advising oilfield services and equipment clients in the oil and gas sector. Noble owns and operates onesector, from August 2019 to March 2020. He has 15 years of the most modern, versatile and technically advanced fleets of mobile offshore drilling units in the offshore drilling industry. Noble provides, through its subsidiaries, contract drilling servicesinvestment banking experience working with a fleet of 19 offshore drilling units, consisting of seven floaters and 12 jackups at the date of this report, focused largely on ultra-deepwater and high-specification drilling opportunities in both established and emerging regions worldwide. Each type of drilling rig is described further below. Several factors determine the type of unit most suitable for a particular job, the most significant of which include the water depth and the environment of the intended drilling location, whether the drilling is being done over a platform or other structure, and the intended well depth. At December 31, 2020, our fleet was located in Far East Asia, the Middle East, the North Sea, Oceania, South America and the US Gulf of Mexico.

The offshore contract drilling industry is a highly competitiveother financial information) provided to the SEC and cyclical business. Demandthe investing public, to prepare and approve reports of the committee that are required by rules of the SEC to be included in the Company’s proxy statement for offshore drilling services is drivenits annual general meeting of shareholders and to assist our Board with oversight of the following: integrity of the Company’s financial statements; compliance by the offshore explorationCompany with standards of business ethics and development programslegal and regulatory requirements; qualifications and independence of oilthe Company’s independent auditors including both our independent registered public accounting firm and gas operators, whichour statutory auditors; and performance of the Company’s independent auditors and internal auditors. Our Board has determined that Mr. Bartels, an independent director, is an “audit committee financial expert” as that term is defined under the applicable SEC rules and regulations.

We maintain a global operational presence and compete in manyevent that the date of the major offshore oilannual general meeting is not within 30 days before or after such anniversary date, notice by the shareholder to be timely must be so delivered not earlier than the 90th day prior to such annual general meeting and gas basins worldwide. Allnot later than the close of business on the later of the 70th day prior to such annual general meeting or the 10th day following the day on which public announcement of the date of such meeting is first made, and with respect to any annual general meeting to be held in calendar year 2021, if applicable, to be timely notice must be delivered not later than the close of business on the 10th day following the day on which public announcement of the date of such meeting is first made.

The global mitigation efforts associated with preventing the spread of COVID-19 have significantly slowed global economic activity, leading to a precipitous drop in oil demand in 2020. As the year progressed, some countries began to ease lock-down restrictions, resulting in an increase in oil demand; however, current demand and near-term demand forecasts still lag pre-COVID-19 demand levels. As the demand imbalance played out during the year, crude price volatility lessened as OPEC+ agreed to production level cuts through early 2021. In early 2021, Brent crude averaged $55-$60 per barrel, up from an average of approximately $40 per barrel in 2020. Despite the current price recovery, uncertainty remains around the current level of oil pricesour Board as a resultgroup, the shareholder, other security holder or interested party can:

We believe the convergence of events in 2020 and early 2021 have lengthened an already challenging and slow recovery in our industry. Despite these challenges and demand projections, we believe that oil and gas demand will rebalance and oil and gas will remain an important portion of the world’s energy mix. We expect that the return of stable oil demand and prices coupled with the continued attrition of rigs in the global offshore fleet will bring improved market conditions for our services. Our young and technologically advanced fleet is well positioned to compete as market dynamics improve.

In addition, the United Kingdom (“UK”) government implemented its own ETS in January 2021 to replace the UK’s participation in the EU ETS. The UK has also introduced an auction price floor to prevent carbon prices from dropping below a set level during the initial implementation of the UK ETS. The cost of compliance with the UK ETS and the EU ETS can be expected to increase over time. Additional member state climate change legislation may result in potentially material capital expenditures.

Our customers typically assume responsibility for and indemnify us from loss or liability resulting from pollution or contamination, including third-party damages and clean-up and removal, arising from operationsfollow this discussion under the contract and originating below the surface of the water. We are generally responsible for pollution originating above the surface of the water and emanating from our drilling units. Additionally, our customers typically indemnify us for liabilities incurred as a result of a blow-out or cratering of the well and underground reservoir loss or damage. In the current market, we are under increasing pressure to accept exceptions to the above-described allocations of risk and, as a result, take on more risk. In such cases where we agree, we generally limit the exposure with a monetary cap and other restrictions.

heading “2020 Compensation Information.” The above description of our insurance2020 compensation program and the indemnification provisions of our drilling contracts is only a summary as of the time of preparation of this report, and is general in nature. Our insurance program and the terms of our drilling contracts may change in the future. In addition, the indemnification provisions of our drilling contracts may be subject to differing interpretations, and enforcement of those provisions may be limited by public policy and other considerations.

You should carefully consider the following risk factors in addition to the other information includeddecisions described in this Annual Report on Form 10-K. EachCD&A were determined by our Predecessor’s compensation committee, which was composed of these risk factors could affect our business, operating resultsthree independent directors: Jon A. Marshall, Chair, Julie H. Edwards and financial condition, as well as affect an investment in our shares.Gordon T. Hall.

Our ability to do business in a number of jurisdictions is subject to maintaining required licenses and permits and complying with applicable laws and regulations. For example, all of our drilling units are subject to regulatory requirements of the flag state where the drilling unit is registered. The flag state requirements are international maritime requirements and, in some cases, further interpolated by the flag state itself. In addition, each of our drilling units must be “classed” by a classification society, signifying that such drilling rig has been built and maintained in accordance with the rules of the classification society and complies with applicable rules and regulationsSEC, we also describe compensation actions effected after the end of the flag state. If any drilling unit loses its flag, does not maintain its class or fails any periodical survey or special survey, the drilling unit will be unable to carry on operations and will be unemployable and uninsurable.

We currently conduct our operations through our subsidiaries,executive compensation disclosures and our operating income and cash flow are generated by our subsidiaries. As a result, cash we obtain from our subsidiaries isexecutive compensation structure. See “Actions Taken for the principal source of funds necessary to meet our debt service obligations. Unless they are guarantors of our indebtedness, our subsidiaries do not have any obligation to pay amounts due on our indebtedness or to make funds available2021 Fiscal Year” below for that purpose. Contractual provisions or laws, as well as our subsidiaries’ financial condition and operating requirements, may also limit our ability to obtain the cash that we require from our subsidiaries to pay our debt service obligations. Applicable tax laws may also subject such payments to us by our subsidiaries to further taxation.

The interests of these investors may not always coincide with the interests of the other holders of the New Shares, and the concentration of control in these investors may limit other shareholders’ ability to influence corporate matters. The concentration of ownership and voting power of these investors may also delay, defer or even prevent an acquisition by a third party or other change of control of our Company and may make some transactions more difficult or impossible without their support, even if such events are in the bests interests of our other shareholders. If the New Shares are listed on a national securities exchange, this concentration and voting power may adversely affect the trading price of the New Shares.

The chart below presents a comparison of the five-year cumulative total return, assuming $100 was invested on December 31, 2015 for Legacy Noble, the Standard & Poor's 500 Index, Dow Jones US Oil Equipment and Services and a self-determined offshore drillers peer group. Total return assumes the reinvestment of dividends, if any, in the security on the ex-dividend date. This graph depicts the past performance of Legacy Noble’s ordinary shares through December 31, 2020, and in no way should be used to predict future share performance. All common stock and equity-based compensation awards that were outstanding immediatelyperiods prior to the Effective Date, the terms “we,” “us,” “our,” and the “Company” refer to our Predecessor and, as appropriate, its subsidiaries, the terms “Board” and “compensation committee” refer to the board of directors of our emergence fromPredecessor and the Chapter 11 Cases were terminated and cancelled.

Demand for our services is highly competitive and, in significant part, a function of the worldwide demand for oil and gas and the global supply of mobile offshore drilling units. Since late 2014, the offshore drilling industry has experienced a severe and prolonged downturn stemming from the combination of an oversupply of competing drilling rigs that resulted from the new build rig influx of the 2010s, weak and volatile crude oil prices, and the advancement of onshore opportunities and technology. The Company entered 2020 cautiously optimistic with the prospects forprospect of improvement of the offshore drilling market continuing to improve;market; however, the combined effects of the COVID-19 pandemic and reduced global economic activity have contributed to the steep decline in the demand for oil have resulted in significantly reduced global economic activity.oil. These factors in concert led to heightened competition for opportunities to re-contract our rigs upon the expiration of existing contracts.

As a result of the financial restructuring, Noble emerged from bankruptcy on the Effective Date with a substantially delevered balance sheet and less than $400.0 million of debt. Noble’s capital structure as of the Effective Date includes a $675.0 million revolving credit facility, of which $177.5 million is drawn as of March 10, 2021, and $216.0 million Second Lien Notes (as defined herein). On the Effective Date, Legacy Noble’sJuly 30, 2014 until July 31, 2020 when our ordinary shares were cancelled and New Shares were issued to Legacy Noble’s former bondholders. Certain former bondholders and former equity holders of Legacy Noble were also issued warrants to purchase shares of the Company.

Thethe offshore drilling industry, remains highly competitive. We believeforcing the convergenceCompany and several of eventsits industry peers into bankruptcy and resulting in 2020industry-wide financial distress. In addition, the Company and early 2021several of its industry peers have lengthened an already challenging and slow recovery in our industry.experienced departures of key executives. Despite these challenges and uncertainty surrounding long-term oil demand projections, we believe that oil and gas demand will rebalance and oil and gas will remain an important portion of the world’s energy mix.mix for many years into the future. In order to enhance our ability to reach sustained recovery, our compensation committee recognizes that it is crucial for us to have compensation policies that allow us to recruit and retain high quality executives capable of managing a complex, global business in a challenging environment, and to be able to motivate them to perform. The compensation committee incentivizes our executives to focus on matters that can be managed in spite of poor market conditions, such as safety and environmental performance and strategic and operational excellence.

Atrespective individual on December 31, 2020, we hadwith the remaining 50% on December 31, 2021, subject to the individual being employed by the Company on such date. Mr. Barker also received a cash-based retention award as part of his onboarding agreement when he joined the Company on March 30, 2020, $725,000 that would have been payable on December 31, 2020 and $575,000 on December 31, 2021, subject to continuous employment on such date. In connection with the modifications to the Company’s overall 2020 compensation program that the Board approved in June 2020 as described above, the value of these retention bonuses were instead paid in July 2020, subject to repayment as described above. The retention award values are set forth in the table below: