Rig Moves and Contracts

KCA Deutag, a subsidiary of Abbot Group plc, has been awarded two contracts for further land drilling in Oman by a subsidiary of Shell, Petroleum Development Oman ("PDO"), following an on-line bidding process in December 2002. The two contracts are for heavy land rigs (2000 HP) to be utilized in PDO's ongoing development work in Oman. One is for a two-year term and the other for a four-year term. The approximate combined value of the primary terms of the two contracts is US$37.1 million.

In the Gulf of Mexico Transocean's drillship Deepwater Millennium has moved to Desoto Canyon 927 and is drilling the first well on Marathon's Barracuda Prospect in the Eastern Gulf of Mexico in 8,500 feet of water.

Deepwater Millennium

Diamond Offshore's Ocean Epoch is in route to Magellan's Strumbo No. 1 location Offshore Australia following completion of their contract with BP Vietnam. The Ocean Baroness has completed its five-well program with Murphy Oil in Malaysia and is currently in Singapore undergoing minor repairs.

And in other floater news, The Doo Sung will be spudding the Gorae V-4 well next week for KNOC offshore South Korea and the drillship Saipem 10000 is on it's first well for Agip offshore Brazil following a move from West Africa.