TWO major energy companies purchasing rivals in industry's latest consolidation effort

Tuesday, September 4th 2001, 12:00 am
By: News On 6

NEW YORK (AP) _ Two large energy companies are making multi-billion-dollar acquisitions of rivals in the latest example of consolidation in the oil-exploration business.

Oklahoma City-based Devon Energy Corp. is buying Canadian natural-gas producer Anderson Exploration Ltd. for $3.4 billion in cash, Devon said Tuesday. The company is also reportedly assuming $1.2 billion in debt as part of the deal.

Analysts said the deal would create the nation's largest oil-and-gas production company. It is the latest in a series of acquisitions by American companies of Canadian natural gas producers over the last year.

The other deal involves Dallas-based Santa Fe International Corp. and Houston-based Global Marine Inc. Santa Fe is buying Global Marine for about $3 billion in stock, creating one of the world's largest offshore drilling contractors, the companies said Monday.

The new company, GlobalSantaFe Corp., will be based in Houston and will operate more than 100 rigs, with its own fleet of 59 offshore and 31 land drilling rigs, along with 13 it operates on behalf of others, the companies said.