Ocean Baroness Resumes Operations

Diamond Offshore announced that the semisubmersible, Ocean Baroness, has resumed normal operations under its contract with Murphy Sabah Oil Co., Ltd., a subsidiary of Murphy Oil Corporation.

On April 22, 2002, following drilling of its initial well, the Ocean Baroness experienced a parting of its vendor supplied marine riser during operations offshore Malaysia. The riser has since been retrieved and the Company is in the process of repairing the riser. The Ocean Baroness is currently in transit to a new drilling location and upon arrival will commence normal well operations. Timing of the redelivery of the repaired riser joints is not expected to impede future drilling operations and no additional off contract time is anticipated at this time. Approximately 60 days remain under the term of the contract.

Larry Dickerson, president and chief operating officer, stated, "I commend our crews, engineering team, and support personnel for their extraordinary efforts. The ability of the Ocean Baroness to resume operations in less than 30 days after an event of this magnitude is a reflection of the tremendous capabilities of this Company."