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Rig giant says consolidation 'healthy'



By Upstream staff 

GlobalSantaFe chief executive Jon Marshall said today he believes consolidation would be healthy for the industry.

"It's something we continually look at," Marshall said during an earnings conference call with analysts today, Reuters reported.

When pressed on timing, Marshall said the probability of a deal happening this year was similar to last year.

Last week, shares of GlobalSantaFe rose on market chatter that Norwegian oil driller Seadrill might bid for the Houston-based company.

Any takeover of a US company by a Norwegian company would make sense only if it was all cash and carried a steep premium, Mark Urness, analyst at Calyon Securities, said.

Yesterday, after the market close, GlobalSantaFe said its quarterly profit nearly doubled, helped by higher day rates for its rigs and a lower tax rate.


Tuesday, 27 February, 2007, 19:11 GMT  | last updated: Tuesday, 27 February, 2007, 19:11 GMT

'Its something we continually look at': GlobalSantaFe chief executive Jon Marshall on consolidation in the drilling sector
 

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