|Tuesday, July 18, 2000
Diamond Offshore has reached an agreement with BP Amoco regarding the delivery of the Ocean Confidence. The contract has been changed to extend the delivery date from July 1st to December 1, 2000. This extension will allow time for completion and performance testing of the rig. Diamond Offshore will accrue a penalty based on the delivery date of the rig and has agreed to accrue an additional obligation to BP Amoco for certain types of downtime which could occur during the first two wells of the drilling contract. These accruals would incrementally reduce revenue payments from BP to Diamond Offshore during the five-year contract term of the Ocean Confidence. The expected delivery date of the rig is now September 1, 2000.