Deepwater Discovery Wins Multi-Year Contract Offshore Brazil

Transocean reports that Devon Energy has awarded the company's Fifth-Generation, ultra-deepwater drillship Deepwater Discovery a minimum three-year contract for drilling operations offshore Brazil. Under the terms of the drilling contract, which is currently expected to commence in November 2008, Devon has the right within one year from signing of the contract to convert the primary term from three years to four or five years. Revenues of approximately $520 million to $775 million could be generated over a primary contract term of three to five years in duration, excluding revenues for mobilization, demobilization and client reimbursables.

The Deepwater Discovery is currently under contract to an operator group and drilling offshore Nigeria, Sao Tome and Principe in the Joint Development Zone. Upon completion of the existing contract, currently expected during August 2006, the rig will enter a shipyard for approximately 60 days, followed by the commencement of a two-year contract with Total SA on Total's Akpo field development offshore Nigeria. The rig is one of 32 High-Specification Floaters in the Transocean Inc. fleet, 13 of which are Fifth-Generation Deepwater Floaters. The Deepwater Discovery, which is capable of operating in water depths up to 10,000 feet, entered service in 2000 following its construction at Samsung Heavy Industries shipyard in Koje, South Korea.

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