Parker Drilling cautious on Russia

By Bruce Nichols

HOUSTON (Reuters) - Parker Drilling Co. (PKD.N: Quote, Profile, Research, Stock Buzz) Chairman Robert Parker Jr. said on Thursday Russia's recent moves against foreign business make him cautious about expanding there.

Parker Drilling would need contract assurances protecting its assets in Russia and an exit strategy before embarking on any new business there, Parker said.

"We wouldn't go in if we weren't confident we could get those terms," he said. "I wouldn't say that we are confident today that we could get them."

Analysts say Russia appears to want more control of its oil and gas. The government forced Shell Oil Co. (RDSa.L: Quote, Profile, Research, Stock Buzz) to sell control of its Sakhalin Island project to a Russian company, and has threatened to take a concession from BP Plc. (BP.L: Quote, Profile, Research, Stock Buzz).

Parker Drilling built and operates a rig for Exxon Mobil (XOM.N: Quote, Profile, Research, Stock Buzz) on Sakhalin Island but does not own the rig, so it has no assets at risk. Parker Drilling also is contract operator of a platform offshore of Sakhalin.

The company continues to market itself to operators needing drilling services in Russia but currently has no new deals pending for work there, Robert Parker said.

As for Exxon Mobil's Sakhalin project, he said he has no fears. "Russia wants that project to succeed. It has worked well and come in on time," he said.

Russia's recent moves against foreign companies raise eyebrows, however, he said.  Continued...