Offshore driller GlobalSantaFe says jackup market improving worldwide

Petroleum News

Offshore contract driller GlobalSantaFe believes the jackup rig market worldwide is stable and improving, reflecting a tightening in supply and demand.

“In particular, we are seeing positive indications in 2004 for our heavy duty harsh environment jackup rigs in the North Sea, where we experienced difficult market conditions in 2003,” Jon Marshall, GlobalSantaFe’s chief executive officer, said Jan. 28.

Marshall said his company also is encouraged that its customers are moving ahead with deepwater projects in the Gulf of Mexico, Brazil and West Africa, “which could lead to more balanced market conditions for our deepwater assets in 2004 and beyond.”

GlobalSantaFe reported a 2003 fourth-quarter profit of $24.5 million or 10 cents per share on revenues of $506.2 million, compared to a profit of $52.4 million or 22 cents on revenues of $512.9 million for the same period a year earlier. The decline in net income was attributed largely to decrease in contract drilling operating income, the result of lower day rates and rig utilization during the recent quarter.