GlobalSantaFe Corporation

GlobalSantaFe Corporation was a United States-based oilfield-services company focused on contract drilling for the petroleum industry. Headquartered in Houston, Texas, it operated a fleet of marine and land-based drilling units and supplied drilling services to oil and gas companies in several international markets. Its principal business was the ownership and operation of offshore rigs, including jackup rigs and other marine drilling units, rather than the production or sale of petroleum itself. The company was created in 2001 through the merger of Global Marine and Santa Fe International Corporation. The combination brought together two established drilling contractors and created a substantial international fleet. GlobalSantaFe subsequently operated in a sector shaped by exploration cycles, demand for offshore capacity, rig utilization, safety requirements, and long-term contracts with major energy companies and national oil corporations. The company’s reported fleet included 59 marine drilling rigs, making it a significant participant in the offshore drilling market during the period in which it operated as an independent company. GlobalSantaFe’s history included both strategic portfolio changes and operational events. In March 2003, it temporarily suspended operations in Kuwait in the period preceding the Iraq War, reflecting the security and geopolitical risks affecting drilling contractors in the region. In May 2004, the company sold its worldwide land-drilling assets to Precision Drilling for $316.5 million, concentrating its business more heavily on offshore drilling. In August of the same year, one of its rigs sank in the Mediterranean Sea approximately 25 miles offshore Egypt after a fire broke out aboard the unit. The incident was a significant operational event, although the available reference material does not establish additional details about casualties, liability, or regulatory outcomes. In June 2006, GlobalSantaFe entered into a contract with Saudi Aramco covering four jackup rigs. The agreement illustrated the company’s role as a provider of offshore drilling capacity to large national and international oil companies. Jackup rigs are mobile offshore units used in relatively shallow waters; they are towed to a drilling location and elevated above the seabed on legs during operations. GlobalSantaFe ceased to exist as an independent corporate entity after its combination with Transocean in November 2007. The transaction placed the company’s drilling fleet and operations within Transocean, then one of the world’s largest offshore drilling contractors. Accordingly, GlobalSantaFe is best understood today as a defunct corporate brand and historical drilling company rather than an active standalone business.

GlobalSantaFe Corporation was established in 2001 through the merger of Global Marine and Santa Fe International Corporation. The transaction combined two established contract drilling businesses and created a company with a broad international drilling presence. Rather than exploring for or producing oil and gas on its own account, GlobalSantaFe primarily provided drilling units and related operational services to energy companies. The company was headquartered in Houston, Texas, a major center for the global oilfield-services industry. Its business included offshore and land drilling, supported by a fleet that was reported to include 59 marine drilling rigs. Offshore drilling was the more strategically important part of the portfolio because it exposed the company to demand from international exploration and production programs, including projects operated by large oil companies and national oil companies. GlobalSantaFe’s activities were affected by geopolitical conditions as well as ordinary industry cycles. In March 2003, the company temporarily suspended operations in Kuwait ahead of the Iraq War. The decision reflected the security environment surrounding drilling activity in the region. In May 2004, GlobalSantaFe sold its worldwide land-drilling assets to Precision Drilling for $316.5 million. This transaction reduced the company’s exposure to land drilling and represented a clearer emphasis on offshore contract drilling. The company also experienced a major operational incident in August 2004, when one of its rigs sank in the Mediterranean Sea approximately 25 miles offshore Egypt after a fire broke out on the unit. The available reference account records the loss of the rig but does not provide enough information to determine the full circumstances, casualty information, investigation findings, or legal consequences. It should therefore be treated as an operational incident rather than characterized further. In June 2006, GlobalSantaFe contracted four jackup rigs to Saudi Aramco. The agreement demonstrated the importance of long-term or multi-unit contracts with major energy producers to the company’s business model. Jackup rigs are mobile offshore drilling units designed primarily for shallow-water work. Their legs are lowered to the seabed and the hull is raised above the water during drilling operations. GlobalSantaFe’s independent corporate history ended in November 2007, when it merged with Transocean. The combination transferred GlobalSantaFe’s operating assets and activities into Transocean and made the latter the continuing corporate platform. GlobalSantaFe is consequently a defunct historical corporate brand. Its principal legacy is the integration of Global Marine and Santa Fe International into a substantial offshore drilling contractor that was later absorbed into one of the largest companies in the offshore drilling sector.

• 2007

  Combination with Transocean

  [1]GlobalSantaFe Corporationen.wikipedia.org

  GlobalSantaFe merged with Transocean in November, ending its independent corporate existence.

• 2006

  Saudi Aramco jackup contract

  [1]GlobalSantaFe Corporationen.wikipedia.org

  GlobalSantaFe contracted four jackup rigs to Saudi Aramco.

• 2004

  Land drilling divestiture

  [1]GlobalSantaFe Corporationen.wikipedia.org

  GlobalSantaFe sold its worldwide land-drilling assets to Precision Drilling for $316.5 million.

• 2004

  Mediterranean rig loss

  [1]GlobalSantaFe Corporationen.wikipedia.org

  A GlobalSantaFe rig sank offshore Egypt after a fire broke out aboard the unit.

• 2003

  Temporary Kuwait suspension

  [1]GlobalSantaFe Corporationen.wikipedia.org

  The company temporarily suspended operations in Kuwait in March amid the security conditions preceding the Iraq War.

• 2001

  Formation through merger

  [1]GlobalSantaFe Corporationen.wikipedia.org

  Global Marine and Santa Fe International Corporation merged to create GlobalSantaFe Corporation.

An international contract drilling operator focused primarily on offshore rig ownership and services for oil and gas companies, with its business increasingly concentrated on marine drilling before its 2007 combination with Transocean.

• Offshore contract drilling

  Offshore drilling rigs

  GlobalSantaFe owned and operated marine drilling units used by oil and gas companies for offshore exploration and development drilling. The company’s reported fleet included 59 marine drilling rigs, making offshore capacity the central component of its business.

• Offshore contract drilling

  Jackup rigs

  Jackup rigs are mobile offshore drilling units used mainly in shallow water. The units are moved to a location, their legs are lowered to the seabed, and the hull is raised above the water for drilling. Four such rigs were contracted to Saudi Aramco in 2006.

• Land contract drilling

  Land drilling assets

  GlobalSantaFe also operated land-drilling assets during part of its independent history. These worldwide assets were sold to Precision Drilling in May 2004, after which the company’s portfolio was more strongly oriented toward offshore drilling.

• 2007

  Merger with TransoceanM&A

  Background

  GlobalSantaFe was an established offshore drilling contractor with a substantial marine fleet.

  Action taken

  The company merged with Transocean in November 2007.

  Aftermath

  GlobalSantaFe ceased to operate as an independent company and its business became part of Transocean.

  Source

• 2006

  Four-rig Saudi Aramco contractStrategy

  Background

  Large oil producers and national oil companies represented important customers for offshore drilling contractors.

  Action taken

  GlobalSantaFe contracted four jackup rigs to Saudi Aramco in June 2006.

  Source

• 2004

  Sale of worldwide land-drilling assetsM&A

  Background

  GlobalSantaFe reviewed its asset portfolio while operating across both land and offshore drilling markets.

  Action taken

  The company sold its worldwide land-drilling assets to Precision Drilling for $316.5 million in May 2004.

  Aftermath

  The divestiture left GlobalSantaFe more concentrated on marine and offshore drilling activities.

  Sale price. $316.5 million (May 2004)

  Source

• 2003

  Temporary suspension of Kuwait operationsStrategy

  Background

  Regional security conditions deteriorated in the period before the Iraq War, creating operational risks for companies working in Kuwait.

  Action taken

  GlobalSantaFe temporarily suspended its Kuwait operations in March 2003.

  Aftermath

  The available reference material does not specify the duration of the suspension or the timing of a full operational restart.

  Source

1. 1GlobalSantaFe Corporationen.wikipedia.org