Transocean Reports GOM Incident

Transocean Sedco Forex, Inc., announced its second-generation semisubmersible drilling rig, Transocean 96, experienced an apparent anchor winch failure while under tow. An anchordropped and damaged the Poseidon Pipeline in Ship Shoal Block 332 in the U.S. Gulf of Mexico. Oil was observed on the surface at the site, approximately 75 miles south of Houma, La. All appropriate government agencies were notified, and the pipelne was shut in by Equilon Pipeline Company, which operates the pipeline. Transocean Sedco Forex worked with Equilon's emergency response team and with all appropriate governmental agencies with respect to remediation efforts. The company expects insurance will substantially cover any potential liability associated with the matter.