Structural Failure on the GSF Development Driller 1

GlobalSantaFe reports that an incident involving the company's newbuild semisubmersible, the GSF Development Driller I, occurred Monday, May 24, 2004, at the JSL Shipyard in Singapore.

According to initial reports, a structural failure occurred in the derrick beams during a routine load test, causing damage to equipment within the derrick. An investigation team has been established and is in the process of determining the cause of the incident. A recovery team has also been established to assess and expedite repairs.

The rig was expected to be delivered during July of this year. Based on the initial assessment of the damage, it is anticipated that the delivery of the rig will not be delayed by more than 60 days. The costs of repairing the damage are expected to be paid by the equipment manufacturer or its insurer, and the delay is not expected to have an adverse impact on the company's financial results for 2004.

About GlobalSantaFe
GlobalSantaFe is a leading worldwide oil and gas drilling contractor offering a full range of premium equipment and drilling management services. The company's diverse and technologically advanced fleet of 58 offshore rigs includes premium and heavy duty harsh environment jackups, semisubmersibles, and dynamically positioned ultra-deepwater drillships. Additionally, the company has two semisubmersible rigs under construction. GlobalSantaFe is the world's leading provider of turnkey drilling and drilling management services. More information can be found at

Contacts: Investors: Media: Richard Hoffman Julie Tushingham Tel: 281 925 6441 Tel: 281 925 6443 Brook Wootton Tel: 281 925 6442