Eirik Raude Commences Drilling Operations Offshore Canada

Ocean Rig announces that its newbuild semisubmersible, Eirik Raude, has been delivered under a drilling contract with EnCana Corporation. Ocean Rig and EnCana have formed a partnership to operate the rig under the drilling contract, which commenced on November 1, 2002.

The gross revenues under this drilling contract, which is for a minimum of six months, are expected to be between US $35 million to US $60 million, depending upon the actual contract length and operational performance. In addition, Ocean Rig has received US $15 million from EnCana for the cost of necessary upgrading and mobilization. The contract also provides for up to five optional wells.

For Ocean Rig, the commencement of the drilling contract represents a significant milestone, both ensuring Ocean Rig's presence in the strategically important Canadian offshore market, an area where harsh environments combined with deep water allows optimal use of the rig and providing recognition of Ocean Rig as an integrated drilling contractor.

The Eirik Raude is the second of Ocean Rig's two 5th generation semisubmersible rigs. The Company's first rig, Leiv Eiriksson commenced operations in February 2002 under a contract with an affiliate of ExxonMobil Corporation, which was recently extended for an additional well.


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