Transocean Gets OK on Five Brazil-Based Rigs

Transocean Inc. said that the board of directors of Petroleo Brasileiro S.A. (Petrobras) approved contract awards for five of the company's rigs totaling 19 rig years and an estimated $985 million in revenues, excluding revenues for mobilization, demobilization, performance bonus opportunities and client reimbursables. The contracts were approved for the drillships Deepwater Navigator and Peregrine I and semisubmersible rigs Sedco 707, Sedco 710 and Transocean Driller. Each rig is currently located in Brazil and all of the units with the exception of the Peregrine I are currently under contract to Petrobras.

The contract approved for the Deepwater Navigator, a dynamically positioned drillship capable of drilling in water depths of up to 2,000 meters, has a four-year term which is expected to commence in October 2006, in direct continuation of the rig's current and expected contract commitments. Estimated revenues of $263 million could be generated over the four-year contract period.

A three-year contract was approved for the Peregrine I, a dynamically positioned drillship capable of drilling in water depths of up to 1,500 meters and is expected to commence in November 2005 following an estimated 120-day planned upgrade in a shipyard in Brazil, where the rig is currently idle. Estimated revenues of $123 million could be generated over the three-year contract period. Additional revenues are possible through a performance bonus opportunity of up to 20%.

The contract approved for the Sedco 707, a dynamically positioned semisubmersible rig capable of drilling in water depths of up to 2,000 meters, is for four-years and should commence in January 2006 following the completion of the rig's current contract commitment and an estimated 60-day planned shipyard program. Estimated revenues of $263 million could be generated over the four-year contract period.

A four-year contract for the Sedco 710, a dynamically positioned semisubmersible rig capable of drilling in water depths of up to 1,200 meters, was approved and should commence in October 2006 in direct continuation of the rig's current contract commitment. Estimated revenues of $175 million could be generated over the four-year contract period. Additional revenues are possible through a performance bonus opportunity of up to 10%.

The contract approved for the Transocean Driller, a semisubmersible rig capable of drilling in water depths of up to 1,050 meters, has a four-year term which is expected to commence in August 2006 in direct continuation of the rig's current contract commitment.

Estimated revenues of approximately $161 million could be generated over the four-year contract period. Additional revenues are possible through a performance bonus opportunity of up to 10%.

The approved contracts have not yet been executed. Transocean expects that the contracts will be signed in the next 30 to 60 days.

The Deepwater Navigator, Peregrine I, Sedco 707 and Sedco 710 are four of the 32 High-Specification rigs in the Transocean Inc. fleet, 28 of which are deepwater rigs, capable of drilling in water depths of 1,370 meters and greater. The Transocean Driller is one of 24 Other Floaters in the company's fleet that service the mid-water segment of the market.