Transocean Inc. Granted Exclusive Marketing Right and Purchase Option for Two Drillships
HOUSTON--(BUSINESS WIRE)--April 9, 2007--Transocean Inc.(NYSE:RIG) today announced that its affiliate, Transocean OffshoreInternational Ventures Limited (\"Transocean\"), has entered into anagreement with Pacific Drilling Limited (\"Pacific Drilling\"),providing Transocean with the exclusive marketing right for twocurrently unnamed deepwater drillships under construction, as well asan option to purchase a 50% interest in a joint venture companythrough which Transocean and Pacific Drilling would own thedrillships. The two Samsung 10000 design drillships are currentlyunder construction in Korea with expected delivery dates in 2009.Transocean anticipates providing construction advisory services duringthe period of the option, construction management services uponexercise of the option and operating management services once thedrillships begin operations.
The exclusive marketing right and purchase option granted toTransocean by Pacific Drilling will terminate on November 30, 2007,but can be extended by four months. Transocean may elect to exercisethe option in its sole discretion and anticipates exercising theoption once it has secured a drilling contract or contracts ofsufficient value. The purchase price for the 50% joint ventureinterest is 50% of the documented costs at the time of exercise. Theclosing of the transaction is conditioned on the satisfaction ofcustomary closing conditions and the negotiation of definitive jointventure documents. The agreement with Pacific Drilling contemplatesthat, beginning three years after the closing, Pacific Drilling willhave the right to exchange its interest in the joint venture forTransocean ordinary shares or cash.
Statements regarding the company's anticipated exercise of theoption and purchase of the joint venture interest, contract awards,drillship delivery dates and joint venture terms, as well as any otherstatements that are not historical facts, are forward-lookingstatements that involve certain risks, uncertainties and assumptions.These include but are not limited to inability to obtain contracts forthe drillships, negotiate definitive agreements and satisfy closingconditions, Transocean's discretion in exercising the option,construction project risks, operating hazards and delays, risksassociated with international operations, actions by customers andother third parties, the future prices of oil and gas and otherfactors detailed in the company's most recent Form 10-K and otherfilings with the Securities and Exchange Commission. Should one ormore of these risks or uncertainties materialize, or should underlyingassumptions prove incorrect, actual results may vary materially fromthose indicated.
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 $23 billion, Transocean Inc.'s ordinaryshares are traded on the New York Stock Exchange under the symbol\"RIG.\"
Transocean Inc., Houston
Analyst Contact: John H. Briscoe, 713-232-7551
Media Contact: Guy A. Cantwell, 713-232-7647