International oil and gas drilling contractors GlobalSantaFe Corporation has agreed to sell all of its worldwide drilling assets to Precision Drilling Corporation for $316.5 million in an all cash transaction.
The transaction is anticipated to be completed during the second quarter of 2004, reported a press release.
The sale includes 31 land rigs located in the Middle East, North Africa and South America and an extensive fleet of specialized rig transport equipment that supports land rig operations in Kuwait and the Kuwaiti-Saudi Arabia Partitioned Neutral Zone.
GlobalSantaFe's President and Chief Executive Officer, Jon Marshall stated, "While we have been successful with the land rig business over the years, it has become an increasingly smaller part of our overall operations. This transaction will permit us to focus our management efforts on growing the offshore market.
Precision Drilling Corporation is a global oilfield services company providing a broad range of drilling, production and evaluation services. With corporate offices in Calgary, Alberta, Canada and Houston, Texas, and research facilities in the US and Europe, Precision employs more than 10,000 people conducting operations in more than 30 countries. — (menareport.com)
© 2004 Mena Report (www.menareport.com)
