(From Seadrill IV board)

Drill consolidator? 39 High End Jackups , according to Omar Nokta


Drill consolidator?
If Seadrill succeeds in securing a US listing, it will lead to a wave of consolidation in the offshore drilling sector, an analyst said Monday.


Omar Nokta of investment bank Dahlman Rose says the listing would, for example, make it more likely for there to be a merger between the John Fredriksen-controlled driller and US rival Pride International.




If merged, Seadrill and Pride would have a fleet of 25 deepwater rigs.Oslo-listed Seadrill revealed in August that it is planning to list its shares on the New York Stock Exchange in 2010.


The company, which controls 42 drilling units and newbuildings, holds shares and forward contracts for about 9.5% of NYSE-listed Pride.


Seadrill chief executive Alf Thorkildsen told reporters last month that Pride International could make for a good merger target.


Houston-based Pride owns 28 rigs and drillships, including newbuildings, and Nokta says a merger with Seadrill would create a company that controls 25 deepwater rigs.


In a note to clients, the analyst also said Seadrill and Rowan, an NYSE-listed owner of 29 rigs and newbuildings, have discussed consolidation in the high-end jack-up market.


"A merger of both fleets would control 39 high-end jack-ups, or over 24% of the global 350-foot-plus capacity," Nokta said.


Seadrill is scheduled to report third-quarter earnings on 5 November.

By Eric Martin in Stamford
Published: 16:09 GMT, 19 Oct 2009 | last updated: 16: