OSLO, Sept 11 (Reuters) - Offshore drilling contractor

Seadrill ( SDRL ) is looking to buy more assets or create a

larger player by merging with peers, the company's CEO said on

Wednesday.

Norwegian-born billionaire John Fredriksen lost the control

of the company, once the world's largest driller by market cap,

to its creditors over two debt restructurings since 2014.

Now a much leaner and smaller company, New York-listed

Seadrill ( SDRL ) itself is looking to buy distressed assets or players

with "distressed balance sheets", CEO Simon Johnson told an

investor conference in Norway.

"We are not going to do anything crazy, we've proven our

discipline," he said. But the amount of cash the company has on

its balance sheet, "which some consider inefficient, gives us

both a defensive buffer and a basis for offence", he said.

"We haven't seen the end of consolidation in (the offshore

drilling market)," Johnson added.

Debt restructurings following oil market crashes in 2014 and

2020 led to a wave of consolidation in the sector, which left

fewer players with fewer rigs, with drilling rates more than

doubling since 2021.

"We believe that there is room for one big consolidation,

especially given that our customers are also consolidating,"

Seadrill ( SDRL ) rival Transocean's President and Chief Operating

Officer Keelan Adamson told the conference.

Johnson told the conference Seadrill ( SDRL ) remained agnostic

whether it comes on top in a potential merger, or is bought by

others, provided the price is good.

"We are looking to add a couple of units (drilling rigs) so

we grow to 20-25 units... But we will be also open to being a

junior partner in an integration provided that we get the

premium that reflects the quality of our assets," he added.

Johnson declined to say whether the company was involved in

any negotiations on a possible merger, when asked by Reuters.

Its top three shareholders are investment funds Bybrook

Capital LLP, Canyon Capital Advisors LLC and Elliott Management

Corporation, according to LSEG data.