GlobalSantaFe to Suspend Kuwait Drilling Operations
GlobalSantaFe Corporation has announced its decision to suspend its drilling operations in Kuwait due to the potentially imminent military conflict with Iraq.
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.