Cajun Express Contract Revsied

Transocean Sedco Forex Inc. announced that it has reached an agreement with Marathon Oil Company to amend the existing drilling contract for the ultra-deepwater semisubmersible rig Cajun Express to among other things, extend the required delivery date of the rig.

Under the terms of the amended agreement, Marathon will contract the Cajun Express for a period of 18 months, reduced from an initial contract period of 36 months. The Cajun Express, rated for water depths of up to 8,500 feet, is currently undergoing sea trials in the U.S. Gulf of Mexico. The original contract allowed Marathon to terminate the agreement if the rig was not delivered by March 31, 2001. Although the company currently expects the Cajun Express to complete sea trials and commence operations with Marathon on or before March 31, 2001, the revised contract with Marathon allows for delivery of the rig up to June 30, 2001. Revenues expected to be generated over the revised 18-month contract period total $106.2 million compared to expected revenues associated with the previous 36-month contract of $214.6 million.


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