Transocean Commences Tender Offer for Its 8.00% Debentures

Transocean Inc. (NYSE:RIG) has commenced a tender offer for any and all of its outstanding 8.00% Debentures due April 15, 2027.

Under the terms of the offer, Transocean will purchase these outstanding Debentures at a purchase price determined by reference to a fixed spread of 70 basis points or 0.7% over the yield to maturity based on the bid side price of the U.S. Treasury 5.375% Bond due February 15, 2031 as measured at 3:00 P.M., New York City time, on December 7, 2004, plus accrued and unpaid interest up to the date of payment of such purchased Debentures. The offer will expire at 5:00 P.M., New York City time, on December 9, 2004, unless the offer is extended or earlier terminated. Payment for tendered Debentures will be paid for in same-day funds promptly following the expiration of the offer. It is expected that payment will be made on December 10, 2004. Transocean intends to use existing cash balances on hand to pay for all such Debentures purchased pursuant to the offer.

Goldman, Sachs & Co. will act as Dealer Manager for the offer. The Information Agent is Global Bondholder Services Corporation, and the Depositary is The Bank of New York. Persons with questions regarding the offer should contact the Information Agent at 212-430-3774 or 866-294-2200 or the Dealer Manager toll-free at 800-828-3182.

This news release is neither an offer to purchase nor a solicitation of an offer to sell the Debentures. The offer is made only by the Offer to Purchase dated December 2, 2004.