Marathon Cancels Cajun Express Contract

Transocean Sedco Forex Inc. has received notice from Marathon Oil Company that Marathon considers the 18-month contract for the recently constructed, ultra-deepwater semisubmersible Cajun Express to be terminated. The notice was stated to be issued in response to incidents of downtime relating to equipment issues. Transocean Sedco Forex strongly disputes that Marathon has the right to terminate the contract and intends to vigorously pursue all available remedies.

The dynamically positioned Cajun Express, designed to drill in water depths of up to 8,500 feet, is presently at Green Canyon 1001 in the U.S. Gulf of Mexico.