Ocean Rig Takes Delivery of Eirik Raude

Ocean Rig's second rig, Eirik Raude, was mechanically complete on June 21, 2002, in line with previous estimates. Ocean Rig has taken delivery of the rig from the Irving shipyard in Halifax and the Company is pleased that the rig now will enter a new phase of commissioning and testing. During this period the rig will undergo a series of tests including sea trials before it starts drilling operations. Estimated start of drilling operations is September 1, 2002. The rig will go to work for EnCana offshore Sable Island.

Ocean Rig has entered a long-term loan agreement with a consortium of banks lead by Fortis Bank to refinance a US $100 million loan the Eirik Raude. The financing will be used to repay the high yield loan which was provided by a group of lenders with Credit Suisse First Boston as agent. Based on the refinancing, Ocean Rig will obtain lower financing costs and an improved financing structure. There are considerable differences in the terms of the former loan, which was placed in the U.S. high yield market, and the new conventional bank financing. The difference constitutes US $1.5 to US $2 million during the next three months. The refinancing will be carried out effective from June 28, 2002.


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