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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: RGinPG who wrote (10068)	1/29/1998 10:50:00 AM
From: Bazmataz	Respond to of 95453

Global Marine buys Stena rig HOUSTON, Jan 28 (Reuters) - Offshore driller Global Marine Inc said in a statement that it had bought a third generation semisubmersible drilling rig from a unit of Coflexip Stena Offshore (CXIP.PA) for $150 million. Global said that the Stena Forth rig, which is capable of working in water depths of 1,800 feet and can be modified up to 3,000, would generate revenues of $68 million in a contract in the UK North Sea which extends to November 1998. Global will assume operation of the rig in February 1998 and will finance the purchase through cash and borrwings from an existing revolving credit facility. In a separate deal, Global said that a contract for its Vinlander rig had been extended for a year to drill offshore Newfoundland and would generate revenues of $68 million. The rig will move to Canada from the North Sea in the third quarter of this year to work for a consortium of companies including units of Chevron Corp (CHV - news), Mobil Corp (MOB - news), Norsk Hydro A/S (NHY.OL) and Petro-Canada [NYSE:PCZ - news] Inc (PCA.TO - news) who plan to drill a well in the Hebron area, 350 kilometres offshore Newfoundland. ''The award of this contract and our purchase of Stena Forth underscore Global Marine's commitment to contract deep-water drilling, which is expected to generate approximately 40 percent of our cash flow from contract drilling operations in 1998,'' said chief executive John Ryan.