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Transocean Inc. Reports Fourth Quarter and Full-Year 2005 Results

February 14, 2006

HOUSTON--(BUSINESS WIRE)--Feb. 14, 2006--Transocean Inc. (NYSE:RIG) today reported net income for the three months ended December 31, 2005 of $151.6 million, or $0.45 per diluted share, on revenues of $771.2 million. The results compare to a net loss of $73.4 million, or $0.23 per diluted share, on revenues of $676.9 million, for the three months ended December 31, 2004. Results for the corresponding three months in 2004 included a net loss of $27.1 million, or $0.09 per diluted share, related to our previously reported disposition of TODCO and losses on the early retirement of debt totaling $48.4 million, or $0.15 per diluted share.

For the 12 months ended December 31, 2005, net income totaled $715.6 million, or $2.13 per diluted share, on revenues of $2,891.7 million, compared to net income of $152.2 million, or $0.47 per diluted share, on revenues of $2,613.9 million for the corresponding 12 months in 2004. Net income for the 12 months ended December 31, 2005 included a net gain from TODCO stock sales of $165.0 million, or $0.49 per diluted share, gains resulting from the sale of three drilling rigs of $27.9 million, or $0.08 per diluted share, and a loss on the early retirement of debt of $6.7 million, or $0.02 per diluted share. The results for the comparable 12 months in 2004 included a net gain of $103.6 million, or $0.32 per diluted share, related to our previously reported disposition of TODCO, a gain from the sale of a drilling rig of $21.7 million, or $0.07 per diluted share and losses on the early retirement of debt of $76.5 million, or $0.24 per diluted share.

The company continues to experience strong demand for its High-Specification Floaters fleet with 81% of the fleet committed under firm contracts in 2006, while 78% and 61% of the fleet time is under contract in 2007 and 2008, respectively. Customers are indicating a continued interest in long-term contracts extending toward the end of the decade, especially for the company's Fifth-Generation Floaters fleet. There is also evidence of a broadening base of customers with deepwater drilling rig requirements for exploration and production drilling programs in various geographic locations. Some of these rig needs could potentially be addressed by new rig construction. The company is presently aware of a number of operators that have expressed an interest in awarding drilling contracts for newly constructed ultra-deepwater floaters. The contracted revenue backlog at February 14, 2006 for the company's High-Specification Floaters fleet was approximately $9.7 billion, or 68% of the total fleet's contracted revenue backlog of $14.1 billion.

The company's fleet of 23 Other Floaters (mid-water units) is largely committed to contracts that extend into 2007, with three semisubmersible rigs remaining idle. Robust customer demand remains evident in most operating regions, including the North Sea, West Africa and India. The company was recently awarded contracts for two of its UK North Sea semisubmersibles, the Sedco 704 and Sedco 711, each for one-year durations and at significantly improved dayrates of $310,000 and $283,000, respectively. Both rigs are now committed to contracts that extend into 2008. The company has begun the reactivation of two previously idle semisubmersibles, the Transocean Prospect and Transocean Winner, both supported by multi-year contracts, which are expected to commence by June 2006 and October 2006, respectively. Two additional reactivations remain possible during 2006 involving the semisubmersible rigs C. Kirk Rhein, Jr. and Transocean Wildcat. At present, 70% of the Other Floaters fleet is under contract commitments in 2006, with 38% committed in 2007 and 23% in 2008.

The company's 25 Jackups are experiencing solid demand and rising dayrates in all regions. Contract durations are lengthening, with multi-year opportunities available in Asia, the Middle East and West Africa. The recently announced three-year contracts for drilling programs in India involving five of the company's jackup rigs increased the 2006 committed time in this sector of the fleet to 83%, while 2007 and 2008 committed time improved to 64% and 39%, respectively.

Lost revenues from out-of-service time resulting from the timing of shipyard and maintenance projects and rig mobilizations, as well as possible delays in the start of higher dayrate contracts will mostly offset anticipated revenue growth in the first two quarters of 2006. Delays in the start of higher dayrate contracts are generally related to contract provisions which allow our customers to extend contracts in order to complete a well-in-progress. The company currently expects operating and maintenance costs to exceed the level of costs reported for the fourth quarter of 2005 by approximately $30 to $50 million in the first quarter of 2006 and $70 to $90 million in the second quarter. The expected cost increases are due in part to the reactivation of the semisubmersible rigs Transocean Prospect and the Transocean Winner, the possible reactivation of the semisubmersible rig C. Kirk Rhein, Jr., shipyard projects, including projects on the drillship Discoverer Seven Seas, semisubmersible rigs Transocean Marianas and Sedco 709 and numerous maintenance projects on rigs across the fleet. Operating and maintenance costs for the second half of the year are expected to gradually decline toward the level experienced in the fourth quarter of 2005, although the possible reactivation of the semisubmersible rigs C. Kirk Rhein, Jr. and Transocean Wildcat, inflationary cost pressure and other factors could slow the anticipated decline. The combination of higher operating and maintenance expenses and lost revenue due to out-of-service time and delays in the start of higher dayrate contracts are expected to lead to generally flat earnings in each of the first two quarters of 2006 relative to the fourth quarter of 2005, excluding the effect of gains from potential rig sales. Our expected results during these quarters will be sensitive to the actual timing of shipyards, mobilizations and contract commencements.

Operations Quarterly Review

Revenues for the three months ended December 31, 2005 improved slightly to $771.2 million, compared to revenues of $762.6 million for the three months ended September 30, 2005. The improvement was due chiefly to higher average dayrates, particularly among the Other Floaters fleet, and improved revenues from integrated services activities, substantially offset by increased out-of-service time due to rig repairs and planned shipyard programs. The semisubmersible rigs Transocean Marianas and Deepwater Nautilus spent all or a significant portion of the quarter undergoing repairs following damage caused by hurricanes, while the jackup rigs Trident IV, Trident VIII and Shelf Explorer were in shipyards for all or a significant portion of the quarter for planned maintenance and repairs ahead of the commencement of new contracts. The Deepwater Nautilus returned to work in December 2005; however, the rig is expected to require an additional 60 days of out-of-service time in 2006 to complete repairs to its mooring system. The Transocean Marianas is expected to return to work by the end of the first quarter of 2006, but will require approximately 30 days additional out-of-service time in 2006 for repairs. The Shelf Explorer has commenced its new contract in Indonesia while the Trident IV and Trident VIII are expected to complete shipyard programs and commence new contracts by the end of February 2006 and March 2006, respectively. The increased level of out-of-service time resulted in a decline in fleet utilization to 78% during the three months ended December 31, 2005, from 82% in the previous quarter of 2005, with utilization of the High-Specification Floaters and Jackups experiencing the most significant reduction. The average fleet dayrate increased 6% to $113,300 during the three months ended December 31, 2005, from $107,100 in the previous quarter of 2005.

Operating income before general and administrative expenses(1) totaled $207.2 million and field operating income (defined as revenues less operating and maintenance expense) was $314.2 million, for the three months ended December 31, 2005, down from $222.9 million and $324.4 million, respectively, for the three months ended September 30, 2005. The decline was due chiefly to higher operating and maintenance expense which increased 4% from the previous quarter in 2005 to $457.0 million, primarily resulting from rig repair costs and higher shipyard and integrated services activities. Repairs to the Deepwater Nautilus and Transocean Marianas totaled approximately $13 million in the fourth quarter of 2005, while costs, net of deferrals, associated with scheduled rig maintenance ahead of new contracts for the semisubmersible rig Sedco Energy, drillship Peregrine I and jackup rigs Shelf Explorer and Trident VIII were approximately $27 million.

Effective Tax Rate

The company's effective tax rate(2) for the 12 months ended December 31, 2005 was 16.8%, excluding the previously mentioned effects on income before tax related to the gains from the TODCO stock sales, rig sales and losses on retirement of debt, and excluding various discrete tax items. The actual effective tax rate of approximately 12% for the fourth quarter of 2005 reflects the effect of the lower annual effective tax rate, in addition to the impact of discreet tax items for the settlement of prior year tax disputes, adjustments of deferred tax and valuation allowances and other changes in estimates. The impact of these items in the fourth quarter of 2005 was a reduction in the tax provision of approximately $5 million.

Share Buyback

During the three months ended December 31, 2005, the company purchased $400 million of its ordinary shares, or 6,014,751 shares, pursuant to the $2 billion share repurchase authorization granted by the company's Board of Directors in October 2005. The shares were purchased at an average price of $66.50 per share.

Conference Call Information

Transocean will conduct a teleconference call at 10:00 a.m. ET on February 14, 2006. To participate, dial 303-262-2175 approximately five to 10 minutes prior to the scheduled start time of the call. In addition, the conference call will be simultaneously broadcast over the Internet in a listen-only mode and can be accessed by logging onto the company's website at www.deepwater.com and selecting "Investor Relations." It may also be accessed via the Internet at www.CompanyBoardroom.com by typing in the company's New York Stock Exchange trading symbol, "RIG." A telephonic replay of the conference call should be available after 1:00 p.m. ET on February 14 and can be accessed by dialing 303-590-3000 and referring to the passcode 11051193. Also, a replay will be available through the Internet and can be accessed by visiting either of the above-referenced Worldwide Web addresses.

Forward-Looking Disclaimer

Statements regarding market and business outlook, client contract term interest, newbuild demand and opportunities, deepwater demand, contract backlog, committed fleet time, newbuild jackup rig marketing efforts, mooring system upgrades, duration of current demand cycle, rig demand, timing and impact of shipyard and maintenance projects and reactivations, revenues, costs, earnings, rig sales, out-of-service time, contract duration, contract opportunities, opportunities for the company, dayrates, as well as any other statements that are not historical facts in this release, are forward-looking statements that involve certain risks, uncertainties and assumptions. These include but are not limited to operating hazards and delays, risks associated with international operations, future financial results, actions by customers and other third parties, factors affecting the duration of contracts including well-in-progress provisions, the actual amount of downtime, factors resulting in reduced applicable dayrates, hurricanes and other weather conditions, the future price of oil and gas and other factors detailed in the company's most recent Form 10-K and other filings with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated.

Transocean Inc. is the world's largest offshore drilling contractor with a fleet of 90 mobile offshore drilling units. The company's mobile offshore drilling fleet, consisting of a large number of high-specification deepwater and harsh environment drilling units, is considered one of the most modern and versatile in the world due to its emphasis on technically demanding segments of the offshore drilling business. The company's fleet consists of 32 High-Specification Floaters (semisubmersibles and drillships), 23 Other Floaters, 25 Jackups and other assets utilized in the support of offshore drilling activities worldwide. With a current equity market capitalization in excess of $25 billion, Transocean Inc.'s ordinary shares are traded on the New York Stock Exchange under the symbol "RIG."

    (1) For a reconciliation of segment operating income before
        general and administrative expense to field operating income,
        see the accompanying schedule titled Non-GAAP Financial
        Measures and Reconciliations - Operating Income (Loss) Before
        General and Administrative Expense to Field Operating Income
        by Segment.

    (2) References to effective tax rate are based on the Effective
        Tax Rate as shown in the accompanying schedule titled
        Effective Tax Rate Analysis.

                   TRANSOCEAN INC. AND SUBSIDIARIES
                 CONSOLIDATED STATEMENTS OF OPERATIONS
                 (In millions, except per share data)

                                Three Months Ended     Years Ended
                                   December 31,        December 31,
                                 ----------------- -------------------
                                    2005     2004     2005      2004
                                   ------  -------  --------  --------

Operating Revenues
   Contract drilling revenues     $738.8  $ 626.9  $2,757.1  $2,416.4
   Other revenues                   32.4     50.0     134.6     197.5
                                   ------  -------  --------  --------
                                   771.2    676.9   2,891.7   2,613.9
Costs and Expenses
   Operating and maintenance       457.0    467.4   1,720.6   1,713.6
   Depreciation                    101.8    126.2     405.8     524.6
   General and administrative       19.3     22.7      74.8      67.0
                                   ------  -------  --------  --------
                                   578.1    616.3   2,201.2   2,305.2
 Gain (loss) from disposal of
  assets, net                       (5.2)    (4.4)     29.0      19.2
                                   ------  -------  --------  --------
Operating Income                   187.9     56.2     719.5     327.9
                                   ------  -------  --------  --------

Other Income (Expense), net
   Equity in earnings of
    unconsolidated affiliates        1.8      1.5      10.1       9.2
   Interest income                   5.6      2.8      19.6       9.3
   Interest expense, net of
    amounts capitalized            (23.8)   (39.1)   (111.2)   (171.7)
   Gain from TODCO Stock Sales         -    140.0     165.0     308.8
   Non-cash TODCO tax sharing
    agreement charge                   -   (167.1)        -    (167.1)
   Loss on retirement of debt          -    (48.4)     (7.3)    (76.5)
   Other, net                        1.1        -       6.7       0.4
                                   ------  -------  --------  --------
                                   (15.3)  (110.3)     82.9     (87.6)
                                   ------  -------  --------  --------

Income (Loss) Before Income
 Taxes and Minority Interest       172.6    (54.1)    802.4     240.3
   Income Tax Expense               21.0     17.1      86.8      91.3
   Minority Interest                   -      2.2         -      (3.2)
                                   ------  -------  --------  --------
Net Income (Loss)                 $151.6  $ (73.4) $  715.6  $  152.2
                                   ======  =======  ========  ========

Earnings (Loss) Per Share
   Basic                          $ 0.46  $ (0.23) $   2.19  $   0.47
                                   ------  -------  --------  --------
   Diluted                        $ 0.45  $ (0.23) $   2.13  $   0.47
                                   ------  -------  --------  --------

Weighted Average Shares
 Outstanding
   Basic                           329.8    321.2     327.1     320.9
                                   ------  -------  --------  --------
   Diluted                         336.1    321.2     339.4     325.2
                                   ------  -------  --------  --------



                   TRANSOCEAN INC. AND SUBSIDIARIES
                      CONSOLIDATED BALANCE SHEETS
                   (In millions, except share data)

                                                     December 31,
                                                 ---------------------
                                                    2005       2004
                                                  ---------  ---------
                     ASSETS
Cash and Cash Equivalents                        $   445.4  $   451.3
Accounts Receivable, net
  Trade                                              582.5      426.5
  Other                                               17.2       15.5
Materials and Supplies, net                          156.2      144.7
Deferred Income Taxes, net                            23.4       19.0
Other Current Assets                                  54.4       52.1
                                                  ---------  ---------
Total Current Assets                               1,279.1    1,109.1
                                                  ---------  ---------

Property and Equipment                             9,791.0    9,732.9
Less Accumulated Depreciation                      3,042.8    2,727.7
                                                  ---------  ---------
  Property and Equipment, net                      6,748.2    7,005.2
                                                  ---------  ---------
Goodwill                                           2,208.9    2,251.9
Investments in and Advances to Unconsolidated
 Affiliates                                            8.1      109.2
Deferred Income Taxes                                    -       43.8
Other Assets                                         212.9      239.1
                                                  ---------  ---------
Total Assets                                     $10,457.2  $10,758.3
                                                  =========  =========

      LIABILITIES AND SHAREHOLDERS' EQUITY

Accounts Payable                                 $   254.0  $   180.8
Accrued Income Taxes                                  27.5       17.1
Debt Due Within One Year                             400.0       19.4
Other Current Liabilities                            242.1      213.0
                                                  ---------  ---------
Total Current Liabilities                            923.6      430.3
                                                  ---------  ---------

Long-Term Debt                                     1,197.1    2,462.1
Deferred Income Taxes, net                            65.0      124.1
Other Long-Term Liabilities                          286.2      345.2
                                                  ---------  ---------
Total Long-Term Liabilities                        1,548.3    2,931.4
                                                  ---------  ---------

Commitments and Contingencies

Minority Interest                                      3.6        4.0

Preference Shares, $0.10 par value; 50,000,000
 shares authorized, none issued and outstanding          -          -
Ordinary Shares, $0.01 par value; 800,000,000
 shares authorized, 324,750,166 and 321,533,998
 shares issued and outstanding at December 31,
 2005 and 2004, respectively                           3.2        3.2
Additional Paid-in Capital                        10,565.3   10,695.8
Accumulated Other Comprehensive Loss                 (20.4)     (24.4)
Retained Deficit                                  (2,566.4)  (3,282.0)
                                                  ---------  ---------
Total Shareholders' Equity                         7,981.7    7,392.6
                                                  ---------  ---------
Total Liabilities and Shareholders' Equity       $10,457.2  $10,758.3
                                                  =========  =========



                   TRANSOCEAN INC. AND SUBSIDIARIES
                 CONSOLIDATED STATEMENTS OF CASH FLOWS
                             (In millions)

                                 Three Months
                                     Ended            Years Ended
                                 December 31,        December 31,
                               ----------------- ---------------------
                                  2005     2004       2005       2004
                                -------  -------  ---------  ---------

Cash Flows from Operating
 Activities
   Net income                  $ 151.6  $ (73.4) $   715.6  $   152.2
   Adjustments to reconcile net
    income to net cash provided
    by operating activities
    Depreciation                 101.8    126.2      405.8      524.6
    Stock-based compensation
     expense                       4.3      7.6       16.4       25.3
    Deferred income taxes         33.7     (2.3)      27.1       18.1
    Equity in earnings of
     unconsolidated affiliates    (1.8)    (1.5)     (10.1)      (9.2)
    Net (gain)/loss from
     disposal of assets            5.2      4.4      (29.0)     (19.2)
    Gain from TODCO Stock Sales      -   (140.0)    (165.0)    (308.8)
    Non-cash TODCO tax sharing
     agreement charge                -    167.1          -      167.1
    Loss on retirement of debt       -     48.4        7.3       76.5
    Amortization of debt- related
     discounts/premiums, fair
     value adjustments and
     issue costs, net             (0.3)    (3.6)      (6.6)     (21.2)
    Deferred income, net           2.5     20.2       (7.4)      35.3
    Deferred expenses, net        (9.5)    (3.5)      17.6      (22.0)
    Tax benefit from exercise
     of options to purchase and
     vesting of ordinary shares
     under stock-based
     compensation plans            2.0      5.9       22.1        5.9
    Other long-term liabilities    4.8      4.8       22.8       10.2
    Other, net                    (2.9)    (5.5)     (17.3)      (6.1)
    Changes in operating assets
     and liabilities
       Accounts receivable        (3.1)    (6.1)    (149.8)     (29.3)
       Accounts payable and
        other current
        liabilities                1.6    (56.5)      87.2        4.6
       Income taxes
        receivable/payable, net  (37.6)    (4.2)     (50.6)       1.2
       Other current assets       (3.8)     5.3      (21.9)      (5.3)
------------------------------- -------- -------- ---------- ---------
Net Cash Provided by Operating
 Activities                      248.5     93.3      864.2      599.9
------------------------------- -------- -------- ---------- ---------

Cash Flows from Investing
 Activities
  Capital expenditures           (37.0)   (27.2)    (181.9)    (127.0)
  Proceeds from disposal of
   assets, net                    13.8      6.6       74.1       52.9
  Proceeds from TODCO Stock
   Sales, net                        -    258.0      271.9      683.6
  Reduction of cash from the
   deconsolidation of TODCO          -    (68.6)         -      (68.6)
  Joint ventures and other
   investments, net                  -      1.4        4.5       10.4
------------------------------- -------- -------- ---------- ---------
Net Cash Provided by (Used In)
 Investing Activities            (23.2)   170.2      168.6      551.3
------------------------------- -------- -------- ---------- ---------

Cash Flows from Financing
 Activities
  Repayments on revolving
   credit agreement                  -    (50.0)         -     (250.0)
  Repayments on other debt
   instruments                       -   (548.3)    (880.2)    (955.3)
  Net proceeds from issuance of
   ordinary shares under stock-
   based compensation plans       23.4     10.4      219.5       30.4
  Proceeds from issuance of
   ordinary shares upon
   exercise of warrants              -        -       10.6          -
  Repurchase of ordinary shares (400.0)       -     (400.0)         -
  Decrease in cash dedicated to
   debt service                      -        -       12.0          -
  Other, net                      (0.1)    (0.1)      (0.6)       1.0
------------------------------- -------- -------- ---------- ---------
Net Cash Used in Financing
 Activities                     (376.7)  (588.0)  (1,038.7)  (1,173.9)
------------------------------- -------- -------- ---------- ---------

Net Decrease in Cash and Cash
 Equivalents                    (151.4)  (324.5)      (5.9)     (22.7)
------------------------------- -------- -------- ---------- ---------
Cash and Cash Equivalents at
 Beginning of Period             596.8    775.8      451.3      474.0
------------------------------- -------- -------- ---------- ---------
Cash and Cash Equivalents at
 End of Period                 $ 445.4  $ 451.3  $   445.4  $   451.3
=============================== ======== ======== ========== =========



                            Transocean Inc.
                      Fleet Operating Statistics

                               Operating Revenues ($ Millions)
                      ------------------------------------------------
                           Three Months Ended           Years Ended
                      ----------------------------- ------------------
                      December  September December     December 31,
Transocean Drilling      31,       30,       31,
 Segment:               2005      2005      2004        2005      2004
                      --------- --------- ---------  --------  -------
Contract Drilling
 Revenues
    High-Specification
     Floaters:
        Fifth-
         Generation
         Deepwater
         Floaters     $  221.4  $  220.9  $  190.7  $  848.4  $  781.0
        Other
         Deepwater
         Floaters     $  150.4  $  161.8  $  114.2  $  583.2  $  438.1
        Other High-
         Specification
         Floaters     $   59.5  $   60.8  $   45.7  $  226.5  $  142.0
    Total High-
     Specification
     Floaters         $  431.3  $  443.5  $  350.6  $1,658.1  $1,361.1
    Other Floaters    $  153.4  $  136.1  $   71.6  $  491.9  $  267.6
    Jackups           $  132.9  $  133.2  $  108.1  $  520.8  $  417.6
    Other Rigs        $   21.2  $   22.8  $   23.7  $   86.3  $   87.8
Subtotal              $  738.8  $  735.6  $  554.0  $2,757.1  $2,134.1
Other Revenues
    Client
     Reimbursable
     Revenues         $   21.1  $   19.8  $   18.2  $   84.8  $   73.8
    Integrated
     Services and
     Other            $   11.3  $    7.2  $   18.8  $   49.8  $   72.5
Subtotal              $   32.4  $   27.0  $   37.0  $  134.6  $  146.3
Segment Total         $  771.2  $  762.6  $  591.0  $2,891.7  $2,280.4

TODCO Segment (2)
Contract Drilling
 Revenues             $      -  $      -  $   72.9  $      -  $  282.3
Other Revenues
    Client
     Reimbursable
     Revenues         $      -  $      -  $    5.7  $      -  $   21.9
    Delta Towing and
     Other            $      -  $      -  $    7.3  $      -  $   29.3
Subtotal              $      -  $      -  $   13.0  $      -  $   51.2
Segment Total         $      -  $      -  $   85.9  $      -  $  333.5

Total Company         $  771.2  $  762.6  $  676.9  $2,891.7  $2,613.9

                               Average Daily Revenue  (1) (3)
                      ------------------------------------------------
                           Three Months Ended           Years Ended
                      ----------------------------- ------------------
                      December  September December     December 31,
Transocean Drilling      31,       30,       31,
 Segment:               2005      2005      2004        2005      2004
                      --------- --------- ---------  --------  -------
    High-Specification
     Floaters:
        Fifth-
         Generation
         Deepwater
         Floaters     $215,800  $197,100  $180,100  $198,000  $185,700
     Other Deepwater
      Floaters        $138,800  $141,700  $119,400  $134,700  $107,800
        Other High-
         Specification
         Floaters     $161,700  $166,300  $135,700  $162,900  $120,000
    Total High-
     Specification
     Floaters         $174,100  $168,800  $149,000  $165,700  $144,000
    Other Floaters    $ 98,500  $ 90,400  $ 64,000  $ 86,500  $ 64,300
    Jackups           $ 64,900  $ 58,900  $ 55,800  $ 59,800  $ 53,100
    Other Rigs        $ 48,500  $ 48,000  $ 48,100  $ 47,300  $ 45,100
Segment Total         $113,300  $107,100  $ 93,900  $105,100  $ 91,100

TODCO Segment (2)     $      -  $      -  $ 28,600  $      -  $ 26,900

Total Drilling Fleet  $113,300  $107,100  $ 74,200  $105,100  $ 71,300



                                         Utilization (1) (3)
                               ---------------------------------------
                                   Three Months Ended      Years Ended
                               --------------------------- -----------
                               December September December  December
                                  31,      30,       31,       31,
Transocean Drilling Segment:     2005     2005      2004   2005  2004
                               -------- --------- -------- ----- -----
    High-Specification
     Floaters:
        Fifth-Generation
         Deepwater Floaters         86%       94%      89%   90%   88%
        Other Deepwater
         Floaters                   79%       83%      69%   79%   74%
        Other High-
         Specification Floaters    100%       99%      92%   95%   81%
    Total High-Specification
     Floaters                       84%       89%      80%   86%   81%
    Other Floaters                  71%       68%      50%   65%   45%
    Jackups                         89%       98%      81%   94%   83%
    Other Rigs                      49%       51%      54%   50%   50%
Segment Total                       78%       82%      69%   79%   68%

TODCO Segment  (2)                   -         -       47%    -    43%

Total Drilling Fleet                78%       82%      61%   79%   58%

(1) Average daily revenue is defined as contract drilling revenue
    earned per revenue earning day in the period. A revenue earning
    day is defined as a day for which a rig earns dayrate after
    commencement of operations. Utilization is defined as the total
    actual number of revenue earning days in the period as a
    percentage of the total number of calendar days in the period.

(2) TODCO was deconsolidated effective December 17, 2004.

(3) Excludes a drillship engaged in scientific geological coring
    activities, the Joides Resolution, that is owned by a joint
    venture in which we have a 50 percent interest and is accounted
    for under the equity method of accounting.



                   Transocean Inc. and Subsidiaries
            Non-GAAP Financial Measures and Reconciliations

   Operating Income (Loss) Before General and Administrative Expense
                 to Field Operating Income by Segment
                           (in US$ millions)

                           Three Months Ended          Years Ended
                       --------------------------- -------------------
                       December September December    December 31,
                          31,       30,      31,
                         2005      2005     2004      2005      2004
                        -------  --------  -------  --------  --------

Transocean Drilling
 Segment
  Operating revenue    $ 771.2  $  762.6  $ 591.0  $2,891.7  $2,280.4
  Operating and
   maintenance expense
   (1)                   457.0     438.2    405.9   1,720.6   1,432.6
  Depreciation           101.8     102.1    106.2     405.8     432.6
  (Gain) loss from
   disposal of assets,
   net                     5.2      (0.6)     5.0     (29.0)    (13.4)
                        -------  --------  -------  --------  --------
 Operating income
  before general and
  administrative
  expense                207.2     222.9     73.9     794.3     428.6
 Add back: Depreciation  101.8     102.1    106.2     405.8     432.6
           (Gain) loss
            from
            disposal of
            assets, net
            (1)            5.2      (0.6)     5.0     (29.0)    (13.4)
                        -------  --------  -------  --------  --------
 Field
  operating
  income               $ 314.2  $  324.4  $ 185.1  $1,171.1  $  847.8
                        -------  --------  -------  --------  --------

TODCO Segment (2)
  Operating
   revenue             $     -  $      -  $  85.9  $      -  $  333.5
  Operating and
   maintenance expense
   (1) (3)                   -         -     61.5         -     281.0
  Depreciation               -         -     20.0         -      92.0
  (Gain) loss from
   disposal of assets,
   net                       -         -     (0.6)        -      (5.8)
                        -------  --------  -------  --------  --------
 Operating income
  (loss) before general
  and administrative
  expense                    -         -      5.0         -     (33.7)
 Add back: Depreciation      -         -     20.0         -      92.0
           (Gain) loss
            from
            disposal of
            assets, net
            (1)              -         -     (0.6)        -      (5.8)
                        -------  --------  -------  --------  --------
 Field
  operating
  income               $     -  $      -  $  24.4  $      -  $   52.5
                        -------  --------  -------  --------  --------

(1) Loss on retirement for Q4 05, Q3 05, Q4 04, YTD Q4 05 and YTD Q4
    04 of $6.7 million, $1.6 million, $7.4 million, $10.4 million and
    $12.7 million, respectively, was reclassed out of Operating and
    maintenance expense and into Gain (loss) from disposal of asset,
    net for each period presented.

(2) Amounts are representative of TODCO's results through December 16,
    2004. TODCO was deconsolidated effective December 17, 2004 in
    connection with the December offering and conversion of the
    Company's remaining TODCO Class B common stock to Class A common
    stock.

(3) Q4 04 and YTD 04 include $6.0 million and $32.3 million,
    respectively, of operating and maintenance expense that TODCO
    classified as general and administrative expense.



                   Transocean Inc. and Subsidiaries
                      Effective Tax Rate Analysis
                           (in US$ millions)

                            Three Months Ended         Years Ended
                         --------------------------- -----------------
                        December September December   December 31,
                            31,      30,       31,

                          2005      2005     2004    2005 (3) 2004 (3)
                         ------    ------  -------   -------  -------
Income (Loss)
 before Income
 Taxes and
 Minority
 Interest                $172.6    $195.1  $ (54.1) $ 802.4  $ 240.3
 Add back
  (subtract):
  Stock option
   vesting
   resulting from
   the TODCO IPO              -         -        -        -      7.1
  Loss on
   retirement of
   debt                       -       0.6     48.4      7.3     76.5
  Gain on sale of
   assets                     -         -     (0.1)   (32.8)   (21.7)
  Gain on TODCO
   Stock Sales                -         -   (140.0)  (165.0)  (308.8)
  Income from
   TODCO tax
   sharing
   agreement               (1.3)    (10.1)       -    (11.4)       -
  Write-off of
   receivable
   from related
   party                      -         -    167.1        -    167.1
                         ------    ------  -------   -------  -------
Adjusted Income
 before Income
 Taxes and
 Minority
 Interest                $171.3    $185.6  $  21.3  $ 600.5  $ 160.5

Income Tax
 Expense                 $ 21.0    $ 24.7  $  17.1  $  86.8  $  91.3
 Add back
  (subtract):
  Valuation
   allowance
   related to
   TODCO Stock
   Sales                      -         -    (15.1)       -    (32.4)
  Other                       -         -        -        -     (1.1)
  Changes in
   estimates (1)            4.8       8.5     16.2     18.9     21.9
  Gain on sale of
   assets                     -         -        -     (4.8)       -
                         ------    ------  -------   -------  -------
Adjusted Income
 Tax Expense
 (2)                     $ 25.8    $ 33.2  $  18.2  $ 100.9  $  79.7

Tax Rate                   12.2%     12.7%   -31.6%    10.8%    38.0%

Effective Tax
 Rate                      15.1%     17.9%    85.4%    16.8%    49.7%

(1) Our estimates change as we file tax returns, settle disputes with
    tax authorities or become aware of other events and include
    changes in deferred taxes, valuation allowances on deferred taxes
    and other tax liabilities.

(2) The three months ended December 31, 2005, September 30, 2005 and
    December 31, 2004 include $(3.0) million, $0.8 million and $(3.3)
    million, respectively, of additional tax expense (benefit)
    reflecting the catch-up effect of an increase in the annual
    effective tax rate.

(3) Cumulative year-to-date amounts may include amounts which were
    not included in a particular quarter presented for that year.

CONTACT: Transocean Inc.
Jeffrey L. Chastain, 713-232-7551 (Analyst Contact)
or
Guy A. Cantwell, 713-232-7647 (Media Contact)

SOURCE: Transocean Inc.