Transocean Signs Deal for Two Drillships

Transocean Inc. has been awarded contracts for two High-Specification drillships, the Deepwater Millennium and the Deepwater Expedition, for drilling operations in the U.S. Gulf of Mexico and offshore Egypt, respectively. The Deepwater Millennium, a Fifth-Generation, dynamically positioned drillship, has been awarded a two-year contract by Anadarko Petroleum Corporation for drilling operations in the U.S. Gulf of Mexico. Revenues of approximately $209 million could be generated over the two-year contract. The Deepwater Expedition, also a Fifth-Generation, dynamically positioned drillship, has been awarded a three-well, estimated 90-day contract plus a 30-day option well from a Shell subsidiary for drilling operations offshore Egypt in the eastern Mediterranean Sea. Following the completion of the rig's current contract with Petrobras in Brazil, which is expected to conclude in October 2005, the Deepwater Expedition will commence an estimated 30-day mobilization to Egypt and is expected to begin the 90-day contract in November 2005. Revenues of approximately $22 million could be generated over the estimated 90-day contract period. The Deepwater Millennium and Deepwater Expedition are two of 32 High-Specification rigs in the Transocean Inc. fleet, 13 of which are Fifth-Generation Deepwater Floaters. The rigs entered active service as newbuild drillships in 1999.