Eirik Raude Contract Commencement Delayed

Ocean Rig ASA is in the final stages of delivering its second ultra deep semi-submersible drilling rig, the winterized Eirik Raude, for drilling operations offshore Nova Scotia, Canada under the previously announced EnCana drilling contract. The sea trials and the final certification program are progressing well, however the work is taking longer than announced in early September. As a result, the Company now expects Eirik Raude to be delivered on contract during the second half of October 2002.

In connection with the zero coupon mandatory convertible bonds issued in August 2002 and the subsequent issue conducted in September 2002 (the Bond Issue), holders of such bonds acquired 191,275,343 Independent Subscription Rights exercisable upon i) failure to deliver Eirik Raude on contract by 15th October 2002 or ii) cost overrun exceeding US $8 million.

The announced delay of delivery on contract has caused the condition for exercise of the Independent Subscription Rights to be fulfilled. The Independent Subscription Rights must be exercised by October 31, 2002. Each Independent Subscription Right gives the right to subscribe to one share in Ocean Rig at a price of NOK 1 per share. In the event that all outstanding Independent Subscription Rights are exercised, the share capital of the Company will increase from NOK 190,625,555 (190,625,555 shares) to NOK 381,900,898 (381,900,898 shares).

The holders of the Independent Subscription Rights will shortly receive exercise forms from VPS. The Independent Subscription Rights are exercised by completing, signing and returning the form, no later than 31st October 2002. The payment date for the new shares will be November 1, 2002 through a one-time power of attorney given to Pareto Securities ASA. The new shares will be available on the VPS accounts of the subscribers approximately one week after payment is made.


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