GlobalSantaFe decided to suspend its drilling
operations in Kuwait
due to the potentially imminent military conflict with
Chief Operating Officer Jon Marshall said, "While our decision is voluntary and may have a financial impact, our paramount concern is the safety and well being of our employees."
GlobalSantaFe expects to suspend drilling operations on all six of its land
rigs currently operating in Kuwait by March 17, 2003. The rigs will be secured and remain idle until the political climate in the area stabilizes. GlobalSantaFe employs
approximately 432 employees in Kuwait and expects to
evacuate its 386 non-resident employees by that same time.
The suspension of its Kuwait-based drilling operations is not expected to
have a material impact on the company's first quarter 2003 financial results.
Based on current contracts and commitments, future financial results will be
negatively impacted by approximately $0.03 per diluted share for each full
quarter that operations are suspended.
GlobalSantaFe is a leading worldwide drilling contractor offering a full
range of premium equipment and drilling management services. The company's
diverse and technologically advanced fleet of 58 offshore rigs includes
premium and heavy-duty, harsh-environment jackups; semisubmersibles; and
dynamically positioned ultra-deepwater drillships. Additionally, the company
has four rigs under construction. The company also has 31 land rigs and is
the world's leading provider of turnkey drilling and drilling management