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Transocean Inc. Announces Planned Initial Public Offering of Its Gulf of Mexico Shallow and Inland Water Business Segment

July 16, 2002
HOUSTON, Jul 16, 2002 (BUSINESS WIRE) -- Transocean Inc. (NYSE:RIG) todayannounced that it plans to pursue a divestiture of its Gulf of Mexico Shallowand Inland Water business segment. The company plans to establish the Shallowand Inland Water business as a separate, publicly traded company and iscurrently preparing an initial public offering of that company. Transocean Inc.expects to sell a portion of its interest in the initial public offering, whichit hopes to complete by late 2002 or early 2003, subject to market conditionsand other factors.

The Shallow and Inland Water business segment consists principally of jackup rigand drilling barge operations in the U.S. Gulf of Mexico. The business alsoincludes the company's drilling operations in Trinidad and Venezuela. Thebusiness' fleet is currently comprised of 28 jackup rigs, three submersiblerigs, 31 inland drilling barges and a platform rig, as well as nine land rigs inVenezuela. Transocean Inc. acquired these assets in early 2001, following itsmerger with R&B Falcon Corporation.

J. Michael Talbert, Chief Executive Officer of Transocean Inc., stated, \"Throughstrategic transactions and the construction of high-specification floaters,Transocean has built a globally diversified offshore drilling company with acore focus on the ownership and operation of premium mobile offshore drillingrigs. The pending divestiture of the Gulf of Mexico Shallow and Inland Waterbusiness segment will enable the company to intensify its focus in this area.Proceeds generated from an initial public offering will be used primarily tocontinue our focus on debt reduction.\"

Transocean Inc. also announced that Jan Rask has joined the company to bePresident and Chief Executive Officer of the separate entity. Mr. Raskpreviously served as President and Chief Executive Officer of both MarineDrilling Companies, Inc., from 1996 to 2001, and Arethusa (Off-Shore) Limited,from 1993 to 1996.

The initial public offering of securities of the separate company will beregistered under the Securities Act of 1933 and such securities will only beoffered and sold by means of a prospectus. This news release does not constitutean offer to sell or the solicitation of any offer to buy any such securities,nor will there be any sale of any such securities in any state in which suchoffer, solicitation or sale would be unlawful prior to registration orqualification under the securities laws of such state.

Transocean Inc. is the world's largest offshore drilling contractor with morethan 150 full or partially owned and managed mobile offshore drilling units,inland drilling barges and other assets utilized in the support of offshoredrilling activities worldwide. The company's mobile offshore drilling fleet isconsidered one of the most modern and versatile in the world with 31high-specification semisubmersibles and drillships, 28 other semisubmersiblesand one drillship, and 53 jackup drilling rigs. Transocean Inc. specializes intechnically demanding segments of the offshore drilling business, includingindustry-leading positions in deepwater and harsh environment drilling services.With a current equity market capitalization in excess of $8 billion, thecompany's ordinary shares are traded on the New York Stock Exchange under thesymbol \"RIG.\"

Statements regarding the establishment of the separate company, initial publicoffering, timing of the transaction, divestiture preferences, management of theseparate company, the portion of Transocean Inc.'s interest to be sold, as wellas any other statements that are not historical facts in this release, areforward-looking statements that involve certain risks, uncertainties andassumptions. These include but are not limited to stock market conditions,timing of SEC review, results and financial condition of the Shallow and InlandWater business, the future price of oil and gas, rig demand, operating risks,actions by customers and other third parties, competition and other factorsdetailed in the company's most recent Form 10-Q and Form 10-K and other filingswith the Securities and Exchange Commission. Should one or more of these risksor uncertainties materialize, or should underlying assumptions prove incorrect,actual results may vary materially from those indicated.

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