Transocean Announces License Agreement with Pride for Transocean's Dual Activity Patents
HOUSTON--(BUSINESS WIRE)--July 9, 2007--Transocean Inc. (NYSE:RIG)today announced that a license agreement has been executed by whollyowned subsidiaries of Transocean and Pride International, Inc.(NYSE:PDE). In the agreement, the Transocean subsidiary granted thePride subsidiary a worldwide and non-exclusive license to utilizeTransocean's patents for offshore dual activity drilling methods andstructures.
In return, the Pride subsidiary agreed to pay the Transoceansubsidiary $10 million for the first dual activity rig that Pridebuilds in a patented country, plus a five percent royalty on dayraterevenue generated by that rig in any patented country. The Pridesubsidiary agreed to pay the Transocean subsidiary an additional $15million for each subsequent dual activity rig that Pride builds in anypatented country, plus a five percent royalty on dayrate revenuegenerated by those rigs in any patented country. Pride may credit $5million of each $15 million payment toward the applicable five percentroyalty payment.
Transocean developed its dual activity drilling design in 1996 aspart of a project to more efficiently construct wells in deepwaterthrough the use of two complete drilling systems, allowing forparallel drilling operations to be conducted on a single well thatsaves operators both time and money, compared with conventional rigs.Transocean continues to pursue new ways of saving its customers timeand money in the drilling of deepwater exploration and developmentwells with the patented design.
Transocean has patented the structure and methods of operationsassociated with its dual activity invention in the United States (U.S.Patent Nos. 6,085,851; 6,047,781; 6,056,071; and 6,068,069) and inother parts of the world where many dual activity rigs may be built orused.
Transocean Inc. is the world's largest offshore drillingcontractor with a fleet of 82 mobile offshore drilling units. Thecompany's mobile offshore drilling fleet, consisting of a large numberof high-specification deepwater and harsh environment drilling units,is considered one of the most modern and versatile in the world due toits emphasis on technically demanding segments of the offshoredrilling business. The company's fleet consists of 33High-Specification Floaters (semisubmersibles and drillships), 20Other Floaters, 25 Jackups and other assets utilized in the support ofoffshore drilling activities worldwide. With a current equity marketcapitalization in excess of $31 billion, Transocean Inc.'s ordinaryshares are traded on the New York Stock Exchange under the symbol\"RIG.\"
CONTACT: Transocean Inc., Houston
Gregory S. Panagos, 713-232-7551
Guy A. Cantwell, 713-232-7647
SOURCE: Transocean Inc.