R&B FALCON

R&B Falcon Corporation announced today that Deepwater Drilling II L.L.C., a limited liability company owned by affiliates R&B Falcon and Conoco, had concluded a $270 million project financing. The project financing proceeds will be used to finance the construction cost of the ultra deepwater drillship, Deepwater Frontier, which was delivered from Samsung Shipyard in South Korea in March 1999. The 10,000-foot water depth capable Frontier has already drilled on well in New Zealand and is currently mobilizing to another location offshore West Africa. A Bank of America affiliate, BA Leasing & Capital Corporation, was the agent for the transaction. Paul B. Loyd, Jr. the Company’s Chairman and CEO, said, “Our association with Conoco has produced two ultra deepwater drillships which are among the most successful newbuild projects in the industry from both a commercial and technical point of view. Completion of this particular financing culminates Conoco’s and R& Falcon’s joint efforts on the construction and financing of these two ultra-deepwater vessels.”