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Transocean Inc. Announces Plans to Issue Floating Rate Notes

August 29, 2006

HOUSTON--(BUSINESS WIRE)--Aug. 29, 2006--Transocean Inc.(NYSE:RIG) today announced plans to begin a public offering of $1billion principal amount of two-year floating rate notes. The offeringwill be underwritten by Goldman, Sachs & Co., Calyon Securities (USA)Inc., Citigroup Global Markets Inc., J.P. Morgan Securities Inc. andGreenwich Capital Markets, Inc. Transocean expects the offering tocommence on August 29, 2006.

Transocean intends to use a portion of the proceeds from thisoffering to repay approximately $600 million of the outstandingborrowings under its existing $1.0 billion, five-year revolving creditfacility. Transocean also intends to use a portion or possibly all ofthe remaining proceeds from this offering combined with up to $1.0billion of borrowings available under a new $1.0 billion multi-drawterm credit facility, which it expects to enter into prior to theclosing of the notes offering, to repurchase ordinary shares under itsshare repurchase program. Transocean plans to use the remainder, ifany, of such combined amount for capital expenditures, other debtretirement and general corporate purposes. The amount actually usedfor share repurchases will depend on the price of Transocean'sordinary shares, Transocean's outlook for its business, theavailability of reinvestment opportunities in its business and otherfactors.

In May 2006, Transocean's board of directors authorized anincrease in the overall amount of ordinary shares that may berepurchased pursuant to the share repurchase program from $2.0billion, which was previously authorized and announced in October2005, to $4.0 billion. Between June 30, 2006 and August 28, 2006,Transocean repurchased $600 million of its ordinary shares, resultingin a total of $1.6 billion of repurchases under the share repurchaseprogram since October 2005. The program does not have an establishedexpiration date and may be suspended or discontinued at any time.

The notes will be issued pursuant to a shelf registrationstatement filed with the Securities and Exchange Commission on April10, 2001 and declared effective on April 13, 2001.

This press release will not constitute an offer to sell or thesolicitation of an offer to buy any securities, nor will there be anysale of such securities in any jurisdiction in which such offer,solicitation or sale would be unlawful prior to registration orqualification under the securities laws of any such jurisdiction.

The prospectus supplement and the accompanying prospectus for thisoffering may be obtained by contacting Goldman, Sachs & Co., Attn:Prospectus Department, at 85 Broad St., New York, NY 10004, by calling212-902-1171, by sending a fax to 212-902-9316, or by emailingprospectus-ny@ny.email.gs.com.

The statements regarding share repurchases, the expected newcredit facility and the timing, amounts, use of proceeds and otheraspects of the offering, are forward-looking statements that involvecertain assumptions. These include, but are not limited to, marketconditions, Transocean's results of operations and other factorsdetailed in Transocean's filings with the Securities and ExchangeCommission. Should one or more of these risks or uncertaintiesmaterialize, or should underlying assumptions prove incorrect, actualresults may vary materially from those indicated.

Transocean Inc. is the world's largest offshore drillingcontractor with a fleet of 83 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 $21 billion, Transocean Inc.'s ordinaryshares are traded on the New York Stock Exchange under the symbol\"RIG.\"

The issuer has filed a registration statement (including aprospectus) with the SEC for the offering to which this communicationrelates. Before you invest, you should read the prospectus in thatregistration statement and other documents the issuer has filed withthe SEC for more complete information about the issuer and thisoffering. You may get these documents for free by visiting EDGAR onthe SEC Web site at www.sec.gov. Alternatively, the issuer, anyunderwriter or any dealer participating in the offering will arrangeto send you the prospectus if you request it by calling Goldman, Sachs& Co. toll-free at 1-866-471-2526.

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